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News18
6 hours ago
- Business
- News18
TCS Layoffs: Labour Ministry Summons IT Firm Over Mass Job Cuts, Hiring Delays
Last Updated: The labour ministry has summoned TCS over two major issues -- the recent layoffs of 2% workforce or 12,000 employees, and the pending hiring of 600 professionals, says a report. TCS Layoffs. TCS Layoffs 2025: The Labour Ministry has summoned Tata Consultancy Services (TCS) on Friday, August 1, over the company's recent layoffs and delays in onboarding new hires, CNBC Awaaz has reported. The move follows a complaint filed by the Nascent Information Technology Employees Senate (NITES) with the office of the Chief Labour Commissioner (CLC). 'The labour ministry has summoned TCS over two major issues — the recent layoffs of 2% workforce or 12,000 employees, and the pending onboarding of 600 professionals. The ministry has summoned the company after the IT workers' union NITES had filed a complaint in the chief labour commissioner's office," CNBC Awaaz has reported. Taking cognisance of the NITES' complaint, the chief labour commissioner has summoned TCS on August 1, Friday, to get the detailed status of these two issues, according to the report. The Nascent Information Technology Employees Senate (NITES) on Monday, July 28, slammed the layoffs at TCS, calling it 'inhumane", 'unethical" and 'outright illegal". 'Most of those affected are mid and senior-level professionals who have served the company loyally for 10 to 20 years. The email was callously sent on a Sunday evening, without prior notice or any formal communication process in place. This mass layoff is not only unethical and inhumane; it is outright illegal. TCS has planned to terminate thousands of employees without giving them due notice or any prior intimation to the government, all of which are mandatory under existing Indian labour laws," Harpreet Singh Saluja, president of NITES, said in the complaint. 'The IT sector in India employs lakhs of professionals and has been a pillar of our economy. If a company of TCS's scale is allowed to carry out mass layoffs without following due process and without consequences, it will set a dangerous precedent for other companies. It will normalise job insecurity, erode employee rights, and severely damage trust in India's employment ecosystem," he added. On Sunday, July 27, TCS management reportedly circulated an internal email confirming the layoff of nearly 12,000 permanent employees. The majority of those impacted are said to be mid- and senior-level professionals. On Monday, the NITES appealed to Labour Minister Mansukh Mandaviya to intervene, demanding an immediate halt to all terminations and the reinstatement of affected employees. TCS Layoffs TCS, India's largest IT services company, is set to lay off about 2 per cent, or 12,261 employees, of its global workforce this year, with the majority of those impacted belonging to middle and senior grades. As of June 30, 2025, the TCS workforce stood at 6,13,069. It increased its workforce by 5,000 in the recently concluded June quarter. The move is part of the company's broader strategy to become a 'future-ready organisation", focusing on investments in technology, AI deployment, market expansion, and workforce realignment, TCS said in a 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," it said. TCS will provide appropriate benefits, outplacement, counselling, and support to the impacted employees, it added The move comes at a time when India's top IT services companies have delivered single-digit revenue growth in Q1FY26, capping off a somewhat sobering June quarter as macroeconomic instability and geopolitical tensions weighed on global tech demand and delayed client decision-making. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! view comments Location : New Delhi, India, India First Published: July 30, 2025, 14:31 IST News business » economy TCS Layoffs: Labour Ministry Summons IT Firm Over Mass Job Cuts, Hiring Delays Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
United News of India
a day ago
- Business
- United News of India
NITES accuses TCS of illegal layoffs
Bengaluru, July 28 (UNI) The Nascent Information Technology Employees Senate (NITES), a national body advocating for IT and related sector employees, has submitted a detailed complaint to Union Labour and Employment Minister Mansukh Mandaviya, alleging that Tata Consultancy Services (TCS) has carried out illegal terminations of nearly 12,000 permanent employees. The complaint, dated July 28, follows two previous submissions from NITES earlier this month and accuses the IT major of violating labour laws under the pretext of restructuring and artificial intelligence adoption. According to NITES, a company-wide internal email was circulated by TCS management yesterday, informing staff about mass layoffs. The organisation stated that most of the affected employees are mid- to senior-level professionals with 10 to 20 years of service. NITES termed the move 'inhumane' and 'blatantly illegal,' saying the layoffs were executed without any prior notice, formal communication, or adherence to mandatory legal procedures, including notice to the government. NITES President and Bombay High Court advocate Harpreet Singh Saluja said the layoffs would have a devastating impact on thousands of families, especially those of employees above 40 years of age who may find it difficult to secure alternate employment. He said this was not restructuring but a mass sacking disguised in corporate language. He further warned that such actions by a major IT firm like TCS could set a dangerous precedent for the entire sector, eroding job security and damaging trust in India's employment ecosystem. The union also expressed concern over TCS' recent delay in onboarding more than 600 lateral hires who had already resigned from previous roles, and the company's alleged misuse of its bench policy to pressure employees into voluntary resignations. NITES asserted that Indian law clearly requires companies to issue at least one month's notice, offer compensation, and inform the government prior to retrenchment of employees who have served for more than a year. TCS, according to the union, has not complied with any of these legal requirements. The union called on the Ministry of Labour and Employment to take immediate action, including issuing a notice to TCS, halting the terminations, initiating a government inquiry, and strengthening legal safeguards for IT sector employees. NITES also demanded accountability from TCS' top leadership, pointing to rising CEO compensation in contrast with the thousands now losing their livelihoods. NITES warned that if the government fails to act, the organization, along with allied IT unions, will be forced to launch nationwide protests, legal campaigns, and public demonstrations to defend the rights of affected employees. Calling the situation urgent and unjust, Saluja said, 'These are not just numbers. These are lives. These are families. And this exploitation cannot be allowed to continue under the guise of innovation or restructuring.' TCS has not yet responded to the allegations. UNI BDN SSP
The Hindu
2 days ago
- Business
- The Hindu
Layoff announcement: Allegations of forced resignations put TCS in the eye of the storm
After Tata Consultancy Services (TCS) issued an internal circulation announcing plans to cut around 12,000 of its global workforce, employees of the IT major have expressed rage and anguish over the move. The announcement comes close on the heels of a controversial 'bench policy' announced by the company in June, which could translate to job loss for employees on the bench. The move has drawn strong reactions from several IT and ITeS unions. Multiple blows in a month Harpreet Singh Saluja, president at Nascent Information Technology Employees Senate (NITES), informed that the union has filed a formal complaint with the Ministry of Labour and Employment against the company and termed the layoff 'illegal.' 'TCS has planned to terminate thousands of employees without giving them due notice or any prior intimation to the government, all of which are mandatory under existing Indian labour laws,' read the letter addressing Mansukh Mandaviya, Minister for Labour and Employment, Government of India. This is the third submission by the union against the company in one month, the first being against the 'bench policy' and the second highlighting an indefinite delay from the company in onboarding more than 600 lateral hires. Allegations of forced resignations Allegations have also surfaced that TCS has been forcing mid-management employees on the bench to resign and threatening them with drastic measures such as blacklisting and holding back payments if they refused. 'Employees on the bench' refers to staff who are not assigned to a client project for the time being, but would remain on the company's payroll. The newly implemented guidelines of TCS restrict the bench duration to 35 days a year. Employees and unions allege that this puts the onus on the workers to find projects. A mid-level employee at the company who wished to remain anonymous alleged that several hundred employees, primarily those on the bench, have been forced to resign from the Bengaluru office of the company in the last two weeks. 'People are promised a few months' pay if they are willing to resign. If they refuse, they are threatened with termination without any compensation. People are being scared into resignation by saying that the company will blacklist them and will not provide them with a relieving letter,' the employee said Employees anxious According to the employee, the company has also started instructing managers to furnish information about a fixed number of 'non-critical' staff from each project. 'So far, the impression was that only those on the bench were in danger. With yesterday's circular, those working on projects have also become anxious,' said the employee. Mr. Saluja noted that affected employees from the company's offices in Bengaluru, Kolkata, and Hyderabad have also approached the union. 'If the company terminates them on the basis of the bench policy, it can be challenged in court. But if it is shown that the employees resigned on their own accord, there are no chances for people to fight back,' he said. Saubhik Bhattacharya of All India IT & ITeS Employees' Union (AIITEU) alleged that forcing employees to resign would also help the company save severance packages. Helpdesk set up With concerns about massive retrenchments, unions including The Karnataka State IT/ITeS Employees Union (KITU), AIITEU and NITES have setup helpdesk numbers for employees under duress. 'As per the Industrial Disputes Act, it is a punishable offence for an employer to compel an employee to resign. Every employee has the legal right to refuse to sign a forced resignation,' said KITU which demanded immediate government intervention. 'As per labour laws, any company employing more than 100 workers must obtain prior permission from the government before carrying out any retrenchment,' said the Union. TCS has not responded to The Hindu's request for a comment.
Time of India
2 days ago
- Business
- Time of India
What is TCS' bench policy whose first 35-day cycle ended this month
Thousands of Tata Consultancy Services ( TCS ) employees are grappling with heightened job insecurity as the IT giant's controversial bench policy completed its first 35-day cycle this week, coinciding with the company's announcement of 12,000 global job cuts. The policy, implemented on June 12, caps the maximum bench period—time without project allocation—at just 35 days annually, after which employees risk career degrowth or termination. New policy limits 'bench time' to 35 days per year TCS's revised deployment policy requires employees to be billable for at least 225 business days within a 12-month period, effectively limiting bench time to a maximum of 35 business days per year. During unallocated periods, employees must spend 4-6 hours daily on upskilling through internal platforms and are required to maintain office presence, with remote work generally prohibited. The policy places primary responsibility on employees to proactively seek new assignments through the Resource Management Group (RMG). Long periods without allocation can adversely impact compensation, career growth, overseas deployment opportunities, and employment continuity, according to internal company documents. Online forums like Reddit are flooded with posts from anxious TCS employees. "This is the first step towards employment rationalisation based on utilisation. Brace for layoffs," one user wrote. A fresher claimed being pressured into support projects unrelated to their Java training within weeks of joining. Employee union calls policy 'inhumane and exploitative' The Nascent Information Technology Employees Senate (NITES) filed a complaint with the Union Labour Ministry on Wednesday, calling the policy "inhumane" and "exploitative." Based on complaints from 78 employees, NITES alleged that TCS is coercing benched employees with termination threats and denial of experience letters. "These are not non-performing employees, but skilled professionals who find themselves temporarily without allocation," said NITES president Harpreet Singh Saluja. However, some employees support the move, arguing it could help remove long-term benchers who decline projects. TCS CEO K Krithivasan defended the policy as a "structured version of what's long been in practice," emphasizing that associates must take responsibility for their careers while HR supports placement efforts. TCS announces 12,000 job cuts amid skill mismatch concerns Separately, TCS plans to cut approximately 12,000 jobs globally—around 2% of its 613,000-strong workforce—through FY26, according to a Moneycontrol report. CEO Krithivasan clarified that the layoffs stem from skill mismatches rather than AI-driven productivity gains, primarily affecting mid-to-senior level employees and some junior staff on prolonged bench time. The IT sector faces reduced demand due to macroeconomic uncertainty and AI automation of routine tasks. Industry estimates suggest 15-18% of employees at major Indian IT firms are typically on the bench. TCS reported employee costs of ₹37,715 crore in Q1, constituting 59.45% of revenue, with attrition at 13.8%. The company's strict bench policy could influence other IT firms to tighten similar policies as the industry adapts to AI-led demand for advanced skill sets, experts told ET.
Time of India
23-07-2025
- Business
- Time of India
IT union flags onboarding delay by TCS, company says 'committed to honour all offers'
Advt Advt IT union flags TCS' new bench policy to Labour Ministry TCS has introduced a revised associate deployment policy that limits bench time to no more than 35 business days per year, requiring employees to be billable for at least 225 days annually. See More Details By , ETHRWorld Join the community of 2M+ industry professionals. Subscribe to Newsletter to get latest insights & analysis in your inbox. All about ETHRWorld industry right on your smartphone! Download the ETHRWorld App and get the Realtime updates and Save your favourite articles. A Pune-based information technology (IT) union has filed a complaint with the Ministry of Labour and Employment against Tata Consultancy Services (TCS), alleging an indefinite delay in the onboarding of over 600 lateral hiresAccording to the Nascent Information Technology Employees Senate ( NITES ), these are experienced professionals from cities including Bengaluru, Hyderabad, Pune, Kolkata, Mumbai, and Delhi, who resigned from their previous organizations after receiving confirmed offer letters and joining dates from TCS.'With experience ranging from 2 to 18 years, these individuals were contributing members of their former organizations and had looked forward to continuing their professional journey with a trusted name like TCS. Unfortunately, upon reporting to the company on their designated joining dates, they were informed of an indefinite delay in onboarding. No official communication, revised schedule, or assurance has been provided since. These individuals are now unemployed, struggling with household responsibilities, EMIs, rent, and basic livelihood needs,' the complaint dated July 22, 2025 reads, as seen by response, TCS said, 'We can confirm that, as always, TCS is committed to honour all offers we have made, whether it is to freshers or experienced professionals. Everyone who has received an offer from TCS, will be onboarded. The joining dates are decided as per business demand and in some cases, they do get adjusted to meet our business needs. We remain in continuous touch with all candidates in these cases and look forward to them joining our company soon.'NITES has requested the Labour Ministry to intervene and direct TCS to provide an official, time-bound commitment on the onboarding timeline for the affected has also requested to 'extend access to the company's Employee Assistance Program (EAP) to support affected individuals' mental health; and explore alternate suitable positions for these professionals within the organization'.'NITES believes such corporate practices are deeply unjust and unethical. They violate the principles of fair employment and place workers in vulnerable situations through no fault of their own. We are committed to standing by these employees and ensuring that their voices are heard,' said Harpreet Singh Saluja, President, had earlier reported that NITES had also raised concerns over TCS's newly implemented bench policy . Following complaints from around 78 employees, the union argued that while the policy appears to promote resource optimization, it disproportionately burdens associates upon closer has reached out to TCS for comment on this matter and will update the story as and when the company responds.
