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Major job cuts loom for IT workforce amid company restructuring

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Major job cuts loom for IT workforce amid company restructuring
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Athira Sethu

Kochi, 29 July 2025

India’s IT giant, Tata Consultancy Services (TCS), recently announced plans to lay off 2% of its worldwide employees, mainly middle- and senior-level managers. Although the company asserts that the job cuts are essential to make its operation lean and agile as well as keep pace with technology updates, employee unions are protesting against the move, describing it as unjust and illegal.

The Forum for IT Employees (FITE) has condemned the decision of TCS, blaming the company for prioritizing profits over the welfare of its workforce. According to the unions, the action of TCS appears unwarranted because it is not in any serious financial difficulties.

TCS has assured that up to 12,000 employees may be affected by the layoffs. The company has already initiated reskilling and redeployment initiatives to assist employees in moving to new positions within the company. Nonetheless, those who cannot be redeployed will be terminated. Laid-off employees will be given benefits and assistance as per company guidelines.

In spite of these promises, the unions are asking the workers not to resign voluntarily at the behest of the company. Workers have been told to keep a record of all conversations with the representatives of the company to safeguard themselves. The workers, if they think that they are being coerced into resignation, are asked to contact FITE or the State Labour Commissioner for assistance.

The Karnataka State IT/ITeS Employees Union has even threatened TCS with a warning against forcing employees out. The union demands that the laid-off employees must be provided with all their dues, such as payment of notice period, severance packages, and even a year’s insurance cover.

In short, though TCS maintains that the restructuring is a part of a strategic move to adjust to shifting market demands, unions are resisting this, contending that the company is giving importance to money over the well-being of its employees. They insist that TCS be just to its workers and ensure the affected people receive their rights and benefits.

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