TCS Layoffs: Centre Seeks Clarity From Company Over Planned 12,000 Job Cuts

TCS assures affected employees will receive full benefits and support, while IT unions protest the layoffs and call it illegal. The Ministry of Information and Technology seeks to understand the rationale behind the move.

New Delhi: The Central Government is closely monitoring Tata Consultancy Services' announcement to lay off around 12,000 employees. According to reports, the Ministry of Information and Technology is in touch with the company and seeks to understand the rationale behind the move. IT unions had protested the layoffs, calling it illegal.

As of June 30, 2025, TCS had 613,069 employees. In the April-June quarter, they hired 5,000 new employees. The company announced on Sunday that its goal is to focus on technological investments, artificial intelligence market growth, and workforce restructuring. TCS has stated that affected employees will receive all benefits, including outplacement services and counseling if needed.

"TCS is on a journey to become a future-ready organisation. This includes strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model," PTI quoted the company as saying.

Meanwhile, the Nascent Information Technology Employees Senate (NITES) has approached Union Labor Minister Mansukh Mandaviya, seeking an explanation for the company's decision to lay off 12,000 people this year. They allege that TCS's actions are unethical, inhumane, and illegal. Following the layoff announcement, Tata Consultancy Services' shares fell one percent to ₹3,058.10 on the BSE in today's trading, its lowest level in 33 months. This is the lowest level since October 2022.