TCS Layoffs: What’s Happening, Why, and What Employees Should Know
India’s biggest IT company, Tata Consultancy Services (TCS), is making headlines—and not for good reasons. The company recently announced it will be letting go of 12,000 employees, which is about 2% of its global workforce. This is the largest layoff ever seen in India’s IT sector, and it’s causing a lot of concern among workers and industry experts.
Why Are People Upset?
Employee unions, like the Karnataka State IT/ITeS Employees Union and the Forum for IT Employees (FITE), are calling these layoffs unfair and possibly illegal. They’re worried that TCS is pressuring employees to resign instead of officially laying them off, which could mean workers miss out on important benefits. The unions are urging anyone affected not to resign under pressure and to keep records of all conversations and emails about their termination.
FITE has also demanded that TCS provide full severance pay, compensation for the notice period, and at least a year of continued health insurance. They’re advising employees to reach out to the State Labour Commissioner or their union before making any decisions.
What Is TCS Saying?
In response to the backlash, TCS has promised to support those who are losing their jobs. The company says it will offer:
- Compensation for the notice period
- Severance packages
- Continued insurance benefits
- Help with finding new jobs (outplacement support)
- Counseling to help with the transition
TCS has thanked the affected employees for their service and says it wants to help them move forward in their careers.
Is This Because of AI?
TCS CEO K Krithivasan has made it clear that these layoffs are not because of artificial intelligence or automation taking over jobs. Instead, he says the company is changing its business focus and needs employees with different skills. Those whose skills no longer match the company’s needs are being let go. TCS says it is still committed to training and hiring people with the right skills for the future.
What Does This Mean for the IT Sector?
This move has sent shockwaves through India’s IT industry. Experts worry that such large-scale layoffs, especially when the company is not in financial trouble, could set a bad example. Unions argue that these job cuts are more about increasing profits than actual business needs, and they want the government to take a closer look.
If you or someone you know is affected, remember: don’t resign under pressure, know your rights, and seek help from unions or labor authorities if needed.
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