ata Consultancy Services (TCS), India’s largest IT services company, is facing mounting backlash after announcing its decision to lay off nearly 12,000 employees this year. The move, which represents about 2% of its global workforce, is being described as the company’s largest workforce reduction to date.
The layoffs have sparked widespread protests organized by the Union of IT and ITES Employees (UNITE), with demonstrations reported in cities including Chennai and Bengaluru. Supported by the Centre of Indian Trade Unions (CITU), UNITE has accused TCS of carrying out “profit-driven retrenchments” rather than responding to business necessity. According to the union, mid-level and senior professionals with strong performance records and leadership experience have been disproportionately affected.
In a statement shared on X (formerly Twitter), UNITE alleged: “TCS is retrenching workers not out of necessity, but for profit. Targeting senior employees & pushing illegal layoffs is an attack on job security across IT. Workers are not numbers on a balance sheet — we demand justice!”
TCS’ response
Meanwhile, TCS has defended its decision, calling it part of its transformation to a “future-ready organisation.” The company said that employees whose deployment is “not feasible” will be released, but assured that service delivery for clients will not be disrupted. TCS emphasized that it is providing impacted employees with severance benefits, notice period compensation, counselling, and outplacement support.
Despite these assurances, unions remain firm in their stance, calling the move an unjust attack on job security in India’s IT sector. They are now demanding government intervention to prevent what they describe as “illegal retrenchment practices.” UNITE has also hinted at escalating the campaign globally if authorities do not act.
The controversy highlights the growing tensions in India’s IT industry, where companies are under pressure to balance profitability, automation, and workforce stability. For TCS, a company often regarded as a pillar of job creation, the layoffs mark a dramatic shift that could reshape its image in the eyes of employees and the wider public.