TCS layoffs Update: IT union writes to Modi government, calls tech firm’s move…, Meity issues statement, says…

TCS, India's premier IT services company, plans to reduce its workforce by 12,261 employees, representing two percent of its global staff this year

New Delhi: In a major development, the Ministry of Information Technology (Meity) has said that the government is monitoring developments following TCS’s announcement to reduce its workforce by over 12,000 staff, according to news agency PTI quoting sources. The report further adds that the ministry is seeking to understand the root causes behind this development and closely following the situation. The ministry is also maintaining communication with the technology company.

TCS, India’s leading IT services firm, is set to cut 12,261 jobs this year. This is equivalent to two percent of its global workforce, with the bulk of the reductions affecting middle and senior management roles. It is important to note that as of 30 June 2025, TCS employed 6,13,069 people, having added 5,000 new staff during the April-June quarter.

“TCS is on a journey to become a future-ready organisation. This includes strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model,” it said as quoted by PTI.

On Sunday, the Indian technology giant said that this restructuring aligns with their strategy to become a “future-ready organisation”, emphasising technological investments, AI implementation, market growth, and workforce reorganisation.

TCS Issues Statement:

“Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year,” the statement further read.

NITES Approaches Modi Government:

In another development, the Nascent Information Technology Employees Senate (NITES) has approached Union Minister for Labour and Employment Mansukh Mandaviya and urged the government to issue a notice to TCS seeking an explanation for the company’s recent decision.

The IT employees’ union has described TCS’ latest move as unethical, inhumane, and outright illegal. “The law clearly states that no employee who has served for over a year can be retrenched unless the company provides one month’s notice or wages in lieu, pays statutory retrenchment compensation, and notifies the govt. TCS has not complied with any of these legal requirements,” NITES alleged, terming the action a blatant and wilful violation of the law.

Here’s What NITES Highlighted:

• NITES highlighted the devastating impact of the layoffs
• NITES stated that thousands of working professionals with families, EMIs, and financial commitments would suddenly lose their livelihood.
• The union further contended that TCS’ actions cannot be justified as restructuring.
• NITES also emphasised that TCS’s proposed move “will normalise job insecurity, erode employee rights, and severely damage trust in India’s employment ecosystem.”
• NITES has called for the framing of stricter safeguards for the IT sector, arguing that the industry currently suffers from a lack of enforceable employment protections.
•  “The psychological, emotional, and financial trauma of this move is unimaginable,” Harpreet Singh Saluja, President of NITES, wrote in the letter.

“If this injustice is not addressed immediately, NITES, along with allied IT employee unions across India, will be forced to organise nationwide protests, legal campaigns, and public demonstrations to ensure that the voices of thousands of affected employees are heard,” the union stated.