TCS Layoffs Protest: Why India’s IT Giant Faces Unprecedented Backlash

Tata Consultancy Services (TCS), India’s largest IT services firm, is facing its biggest controversy in decades after announcing large-scale layoffs. The move has triggered nationwide protests, union agitation, and heated debates about job security in the tech sector.

The Layoff Announcement

In July 2025, TCS confirmed that it would be letting go of about 12,000 employees, accounting for nearly 2% of its global workforce. The company said the decision was driven by a “skills mismatch” rather than cost-cutting through artificial intelligence, insisting that the workforce must be reshaped to meet new market demands.

However, unions and industry insiders believe the actual number of affected employees could reach 30,000–40,000, making it the largest downsizing in TCS’s history.

Why Unions Are Protesting

The Union of IT & ITES Employees (UNITE), supported by the Centre of Indian Trade Unions (CITU), has spearheaded nationwide demonstrations in Chennai, Bengaluru, Pune, and New Delhi. Their key concerns are:

• Mid-career workers targeted: Most affected employees are in their 30s and 40s, with over a decade of experience. Unions allege they are being replaced with fresh graduates hired at a fraction of the salary.
• Profit vs. people: TCS reported revenues of over ₹2.55 lakh crore and distributed huge dividends to shareholders, raising questions about why profitable firms are axing jobs.
• Lack of reskilling: Instead of retraining, unions say TCS is opting for layoffs—contradicting the industry narrative of “reskill, don’t replace.”

A striking example of worker distress came from Pune, where an affected employee staged a one-man protest outside the TCS office, lying on the pavement with a handwritten note: “Give me my salary.”

TCS’s Response

TCS has rejected claims of mass layoffs, calling the speculation “incorrect and misleading.” In an official statement, the company said:

• The layoffs affect only 2% of the workforce.
• Impacted employees will receive severance packages, counseling, and outplacement support.
• The restructuring is part of a transition to a “diamond-shaped workforce model”, which prioritizes specialists and reduces dependency on mid-level roles.

The Larger Debate: Executive Pay & Worker Rights

One of the biggest criticisms centers on TCS’s executive compensation. CEO K. Krithivasan reportedly earned over ₹26 crore in FY25, even as thousands faced job losses. Critics argue this reflects a growing imbalance between corporate profits and worker welfare.

Unions are also demanding government intervention, claiming that TCS violated provisions of the Industrial Disputes Act, which requires companies to seek approval for large-scale layoffs. Several state labor departments have already begun investigating the matter.

What It Means for the IT Industry

The TCS layoffs are being seen as a bellwether for India’s IT sector. Analysts believe:

• Companies are moving from a pyramid model (large base of freshers, smaller mid-levels, fewer seniors) to a diamond model (fewer freshers, more specialists).
• Automation and AI will not eliminate jobs outright but will make mid-level, repetitive IT roles less relevant.
• Workers will need to reskill in AI, cybersecurity, data science, and digital transformation to remain employable.

Conclusion

The TCS layoffs protest is more than just an employee struggle—it is a reflection of the changing DNA of India’s IT industry. As unions fight for job security and reskilling, and as companies restructure to remain competitive, the outcome will likely shape how India’s tech workforce evolves in the next decade.

Whether this episode ends in negotiation, legal intervention, or silent acceptance, one thing is clear: the era of lifetime job security in India’s IT sector is rapidly fading.

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Summary Table

Focus Area	Key Takeaways
Scale of Layoffs	~12,000 jobs announced (2% workforce), but unions claim 30K–40K could be impacted
Union Demands	Reskilling/upskilling, govt intervention, fair treatment, transparency
Company Stance	Layoffs limited, restructuring narrative, support promised
Worker Sentiment	Emotional protests, salary disputes highlight distress
Financial Context	High profits, dividends & executive pay contrast with layoffs
Legal Angle	Possible violation of labour laws, formal complaints filed
Industry Impact	Represents shift to lean IT workforce, strong amid AI-driven change