TCS Layoffs: A Union's Fight vs. a Corporate Giant's Plan

You’ve probably seen the name Tata Consultancy Services (TCS) in the news for years, usually associated with big contracts and being one of India's largest private-sector employers. But recently, the headlines have been different. The air is thick with tension as protests, led by the Union of IT & ITES Employees (UNITE), have taken to the streets in cities like Chennai, raising alarms over a wave of job cuts that they claim is far larger than the company is letting on.

Key Highlights

• ✓ Protests led by the Union of IT & ITES Employees (UNITE) erupt across Indian cities against TCS.
• ✓ UNITE alleges potential job cuts could reach 30,000 to 40,000, targeting experienced employees.
• ✓ TCS refutes these claims, stating the impact is limited to 2% of its workforce, or about 12,000 positions.
• ✓ Labour authorities in Karnataka have initiated conciliation meetings under the Industrial Disputes Act, 1947.
• ✓ The union accuses TCS of replacing senior staff with freshers hired at 80-85% lower pay.

The Battle Lines Are Drawn: Protests on the Streets

It all came to a head when members of UNITE, with support from the Centre of Indian Trade Unions (CITU), organized demonstrations. Their message was clear and their numbers, startling. While TCS has officially stated that a workforce restructuring would affect about 12,000 employees—or 2% of their massive global team of over 600,000—the union paints a much bleaker picture. Janani of UNITE was quoted in The New Indian Express, warning that "nearly 30,000 to 40,000 staff may lose their jobs."

The protesters’ placards told a story of frustration, with some even branding top management as the "Chief of Cruelty" and "Chief of Corporate Greed." The union’s core accusation is that this isn't about necessity; it's about profit. They allege that TCS is systematically targeting mid and senior-level employees, people with years of valuable experience, only to replace them with freshers hired at a fraction of the cost—reportedly at an 80-85% lower pay grade. The demand is simple: withdraw the decision and reskill loyal employees instead of discarding them.

A Pattern of Experience-Based Cuts

According to UNITE’s Joint Secretary, Chandra Shekar Azad, the criteria for who gets laid off seems suspiciously consistent. He told The Hindu Business Line, "The only common factor among those affected so far has been experience.” This suggests a strategic move to trim salary costs, even if it means losing proven talent and leadership, creating a ripple of uncertainty through the company's teams.

The union, which has around 300 members including 50-60 from TCS, is ready to escalate its campaign. Alangunambi Welkin, UNITE’s General Secretary, stated that if the government doesn't step in, they plan to coordinate with international trade organizations to take their fight global. This isn't just a local dispute anymore; it's shaping up to be an international labor rights issue.

💡 By the Numbers: UNITE's press release highlighted a stark contrast: TCS boasts a revenue of 2.55 lakh crore, an operating profit margin of 24.3%, and paid out a 45,588 crore dividend, yet is still slashing 12,000 jobs. The union argues this is purely for profit, not necessity.

TCS Responds: A Different Narrative

Of course, there are two sides to every story. TCS was quick to push back against the union's claims, describing the allegations as "incorrect and misleading" in a statement to Business Line. The company is holding firm on its 2% figure, emphasizing that this is not a mass layoff but a targeted restructuring. Their goal, they say, is to build a "future-ready organisation" with a stronger focus on high-demand areas like cloud, AI, and digital transformation.

TCS also assured that affected employees won't be left high and dry. The company has promised to offer severance packages and transition support to help them move forward. The narrative from the corporate side is one of strategic evolution, a necessary step to stay competitive in a rapidly changing tech landscape. They see it as a painful but essential business decision, not an attack on their workforce.

The Karnataka Conciliation Meeting

The dispute has officially caught the attention of government bodies. Following a complaint from the Karnataka State IT/ITeS Employees Union (KITU), labour authorities in Karnataka called a conciliation meeting. The meeting, chaired by Additional Labour Commissioner G Manjunath, brought together TCS HR executives Boban Varghese Thomas and Mahesh GK and representatives from KITU.

Here's where the story takes another turn. The TCS executives told the officials that the planned layoffs of 2% of their workforce hadn't even started yet. They claimed that the details—like how many employees would be impacted in each city or country—had not been finalized. Furthermore, they stated that they do not officially recognize KITU as a union and pointed out that the union hadn't provided any specific, formal complaints from affected employees, citing only media reports. This adds a layer of complexity, turning it into a "he said, she said" situation in a formal setting.

Government Oversight and the Bigger Picture

The government is not just sitting on the sidelines. The Ministry of Electronics and Information Technology (MeitY) has confirmed that it is keeping track of the situation. In Karnataka, a senior labour official weighed in, stating, “We believe that any company which makes such decisions needs to be considerate and take care of basic labour rights of the employees, where due process needs to be followed and also be given due compensation.” The entire case is now being reviewed under the historic Industrial Disputes Act, 1947.

This conflict isn't happening in a vacuum. It reflects a broader, more profound shift occurring within the Indian IT services industry. Nasscom, the industry’s trade body, has noted that companies are increasingly moving towards "product-aligned delivery models." This sounds like corporate jargon, but what it means is a fundamental reorganization of traditional roles and structures. The skills that were valuable a decade ago might not be what companies are looking for today, leading to these kinds of workforce adjustments across the sector.

Conclusion

So, what we're witnessing is a clash of two powerful forces with completely different perspectives. On one hand, you have UNITE, fiercely advocating for thousands of employees they believe are being unfairly discarded in the name of higher profits. On the other, you have TCS, a global tech behemoth, arguing that this is a necessary strategic pivot to remain competitive in the age of AI and cloud computing. The truth likely lies somewhere in the complex middle, but one thing is certain: this situation has pulled back the curtain on the growing job insecurity and tensions simmering within India's celebrated IT sector.