New Delhi– The Labour Ministry has reportedly summoned Tata Consultancy Services (TCS), India’s largest IT services firm, for a meeting on Friday, August 1st, to address concerns regarding alleged mass layoffs and significant delays in onboarding new recruits. The summons follows a formal complaint lodged by the Nascent Information Technology Employees Senate (NITES) with the office of the Chief Labour Commissioner (CLC).
The government’s action aims to ascertain the precise status of these two key issues affecting a substantial number of IT professionals.
NITES Condemns TCS Actions as “Inhumane” and “Illegal”
NITES had previously criticized TCS’s recent decisions on July 28th, labeling them “inhumane,” “unethical,” and “outright illegal.” According to TCS, the company’s decision to restructure its workforce is part of a drive to become “future-ready,” with the layoffs expected to impact approximately 2% of its current global workforce, which translates to around 12,200 employees, primarily in mid- and senior-level roles. Furthermore, NITES has raised concerns about the indefinite delay in onboarding over 600 lateral hires.
Harpreet Singh Saluja, President of NITES, stated that affected workers were notified of the layoffs via email on a Sunday night, without any prior warning or established official communication procedure. He asserted that the company chose to terminate thousands of workers without providing sufficient notice or informing the authorities beforehand.
“This widespread layoff is not only immoral and cruel, but it is also against the law,” Saluja claimed in his complaint. “According to current Indian labor rules, TCS has intended to fire thousands of workers without providing them with enough notice or notifying the government beforehand.”
TCS Assures Benefits Amidst Criticism
Despite the accusations, TCS has reportedly assured that affected employees will receive a range of benefits in accordance with corporate policies.
K. Krithivasan, CEO and MD of TCS, in a recent interview, confirmed that the layoffs would be carried out “gradually” and “compassionately,” though he did not offer specific details on the process. He emphasized that the layoffs were not driven by AI’s ability to increase productivity but rather by a “skill mismatch” and the company’s inability to deploy certain employees within its evolving business model. Krithivasan added that the company would first attempt to redeploy affected staff members in other departments.
The majority of those impacted by the layoffs are mid- and senior-level employees who have dedicated ten to twenty years to the organization, according to NITES. The union has also urged the Labour Ministry to consider framing stricter safeguards for the IT sector and has threatened nationwide protests if the government fails to take action. This development highlights growing concerns about job security and fair labor practices within India’s rapidly evolving IT industry.
