‘Don’t resign under pressure….’: TCS layoffs opposed by IT employee unions; IT giant to sack 12,000 employees

TCS layoffs are being opposed by IT sector employee unions, with the latter seeking withdrawal of the move. Tata Consultancy Services (TCS), India’s biggest IT services firm, on Sunday announced plans to lay off over 12,000 employees, which is around 2% of its global workforce.

The announcement has sent shockwaves in the IT sector.TCS is now facing opposition from IT sector employee organisations following their announcement of workforce reduction. The sacking will impact mid and senior level employees of TCS.

TCS Layoffs: ‘Don’t resign under pressure’, say unions

According to an ET report, IT employee unions have declared the sackings as unlawful and advised TCS staff facing redundancy to resist pressure to resign. The Karnataka State IT/ITeS Employees Union requested the industry leader to withdraw the layoff plans and restore positions of those affected.Also Read | TCS layoffs: What will Tata Consultancy Services do for 12,000 employees it will let go this year? What the IT giant saidThe Forum for IT Employees (FITE) advocated that TCS should avoid direct pressure on employees to resign, instead providing notice period payments, severance benefits and year-long insurance coverage. FITE highlighted that TCS remains financially sound and these layoffs during stable periods are purely profit-oriented decisions. FITE advised TCS staff to maintain thorough records, avoid voluntary resignations and seek help from either the State Labour Commissioner or FITE if pressured to depart.

What TCS Has Said

TCS has confirmed that departing staff will receive notice period compensation and severance packages. Additionally, the organisation committed to continuing insurance benefits and providing job placement assistance for affected employees.TCS issued a statement after announcing the layoffs, expressing gratitude for employee service and assuring comprehensive support including benefits, outplacement assistance, counselling, and transition guidance for their future endeavours.Also Read | TCS layoffs: 12,000 employees to lose their jobs; Tata Consultancy Services plans 2% workforce cut over the year - what you should knowTCS Chief Executive K Krithivasan clarified that the recent dismissals are not linked to artificial intelligence (AI) taking over positions for improved efficiency.During his conversation with Moneycontrol, Krithivasan explained that the workforce reductions stem from incompatible skill sets. He emphasised that TCS remains committed to recruiting skilled professionals."TCS is on a journey to become a future-ready organisation… As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible," the company had said.