TCS Layoffs: IT Major Defends 'Future Ready' Move Amid Rising Protests; Read Full Statement

TCS plans to lay off 12,000 employees, sparking protests organized by UNITE. The IT giant says the layoffs are part of a restructuring to become future-ready, while the union claims it's profit-driven and targets senior employees.

Tata Consultancy Services (TCS), India’s largest IT services is presently facing backlash after announcing its plans to layoff around 12000 employees. This next round of layoffs will be the largest personnel decrease the corporation has ever experienced. TCS's action has sparked several demonstrations in different cities. The Union of IT & ITES Employees (UNITE) is in charge of organising the demonstrations. Additionally, UNITE has shared information regarding the safeguards on the social media site X, which was formerly known as Twitter. 

“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!” UNITE posted on X.

Here's What TCS Said

In an official statement the IT giant said: “TCS is on a journey to become a future-ready organisation… 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% of our global workforce, primarily in the middle and the senior grades, over the course of the year.”

"This transition is being planned with due care to ensure there is no impact on service delivery to our clients… We understand that this is a challenging time for our colleagues likely to be affected. We thank them for their service and we will be making all efforts to provide appropriate benefits, outplacement, counselling, and support as they transition to new opportunities,” added the company.

Additionally, TCS has declared that it would provide the affected employees with appropriate benefits, counselling, outplacement, and assistance. The impacted employees will also get severance benefits and notice period compensation from the firm.

Union Staged Protests Against Layoff

This week, UNITE, with the help of the Centre of Indian Trade Unions (CITU), organised protests calling on the government to step in and force TCS to change its mind. In a post published on X, the Union organisation stated, "Union of IT And ITES Employees protested today in Chennai against the announced TCS layoff of 12,000 employees and the government inaction."

The union claims that experienced mid-level and senior level employees have been disproportionately affected by the layoffs. The organisation is also accused by the union of dismissing experts with proven leadership abilities and a solid performance history. If the author doesn't take immediate action, UNITE also intends to expand its campaign internationally.