TCS layoffs: MeitY takes note; staff union writes to labour minister

Time of India

28-07-2025

TCS layoffs: MeitY takes note; staff union writes to labour minister
Also in the letter:
TCS layoffs draw government attention
Context:
Why it matters:
What's next:
TCS faces union heat over 12,000 job cuts
What they said:
Also Read:
Backdrop:
Why it matters:
With automation and realignment reshaping roles, concerns around job security and fair practice are bubbling to the surface, while also forcing the government to take a closer look at how India's tech sector handles disruption.
TCS job cuts may set precedent for India's IT sector
The signal:
AI not the culprit (yet)
No status quo:
Samsung exports slump 20% as PLI benefits lapse
Why it matters:
Also Read:
The bigger picture:
The company is seeking credit for FY22, which it claims was impacted by Covid-19.
What to watch:
Also Read:
Google deposes before ED in online betting probe
The case:
Google may have to submit internal records and compliance statements as part of the investigation.
Google's response:
Why it matters:
What's next:
The union government is taking an interest in the TCS layoffs that spooked employees and investors. This and more in today's ETtech Top 5.■ Broader IT shakeup■ Samsung in slow lane■ ED grills GoogleTCS CEO K KrithivasanIndia's IT Ministry is closely monitoring Tata Consultancy Services' (TCS) decision to cut 12,261 jobs – roughly 2% of its global workforce – as alarm grows over job losses at India's largest tech firm. Government officials are in touch with TCS, seeking clarity on the rationale behind the move.TCS said the layoffs are part of its drive to become a 'future-ready organisation', involving the adoption of artificial intelligence, global expansion, and a reorganisation of its workforce. Most of the cuts target mid- and senior-level roles.Job creation remains a key political priority, and the government is weighing whether schemes like the Employment Linked Incentive can soften the blow. The episode also highlights the growing urgency for IT firms to reskill at scale.The ministry may push for more aggressive skilling interventions and wants clearer insight into existing talent gaps. TCS, for its part, said it will offer severance packages, counselling support, and outplacement services to affected employees.Employee union Nascent IT Employees Senate (NITES) has urged labour minister Mansukh Mandaviya to halt TCS's plan to axe over 12,000 jobs , calling the move 'illegal' and demanding the reinstatement of affected employees.In its letter, NITES accused the IT giant of sidelining over 600 lateral hires and questioned the fairness of the layoffs, pointing to hefty executive pay packets. The union also called on the government to hold senior leadership accountable.TCS had framed the cuts as being part of a broader transformation drive. CEO K Krithivasan insisted the decision wasn't AI-led, but stemmed from a skill mismatch , particularly among senior employees.The standoff reflects the growing friction between India's tech majors and their workforce, as companies chase agility and cost savings.TCS's move to cut 12,000 jobs has rattled nerves in India's IT industry, raising concerns about a broader shakeout . No other firm has followed suit yet, but the hiring chill is hard to ignore.TCS added just 5,000 employees in Q1 FY26, while rivals like Infosys have slowed onboarding . The company has also cracked down on idle time , capping non-billable days at 35 annually. The message is becoming clearer: Productivity is now non-negotiable.: While TCS is investing heavily in automation, its CEO insists that the layoffs stem from role overlaps and outdated skills, not machines replacing people. Still, the pace of tech disruption is unmistakable.If others adopt TCS's strategy, job security, particularly for mid-career professionals, could be affected. Expect boardrooms to prioritise workforce agility, reskilling, and internal redeployment.Samsung's smartphone exports from India tumbled 20% year-on-year in Q1 FY26 to $950 million after the South Korean electronics giant stopped receiving incentives under the government's production-linked incentive (PLI) scheme, industry executives told us.The sharp drop has sparked concern over India's cost competitiveness in electronics manufacturing. Without PLI support, India's export costs are estimated to be 10–15% higher than those of Vietnam and China. Apple, Dixon, and other firms could hit a similar wall after FY26, when their PLI cycle comes to an end.Samsung was one of PLI's biggest beneficiaries, scaling exports from $1.2 billion in FY21 to $4.4 billion in FY25. That momentum now risks stalling.A new Rs 22,919-crore components PLI scheme is on the table. But for anchor players like Samsung to stay committed, policy continuity may be just as important as fresh incentives.Google executives appeared before the Enforcement Directorate (ED) on Monday as part of a probe into alleged promotion of illegal online betting and gambling platforms. Meta officials, who were also summoned, skipped the hearing.The ED is examining whether digital platforms enabled ads for unlawful betting sites, potentially violating the Prevention of Money Laundering Act (PMLA).The company said it prohibits illegal gambling ads and is cooperating fully with the authorities. 'We are committed to keeping our platforms safe and secure,' a spokesperson told the news agency Press Trust of India.This marks one of the first PMLA-linked cases scrutinising the ad practices of Big Tech companies in India. With the upcoming Digital India Act, the government is pushing for tighter oversight and platform accountability.The investigation could widen if more violations surface. Advertising rules may soon become far more stringent, particularly for sectors such as gaming, cryptocurrency, and high-risk finance, where regulatory grey areas have long been the norm.