TCS layoffs: IT ministry ‘closely monitoring’ 12,000 job cuts, claims report; IT union calls tech firm's move illegal

The Ministry of Information Technology is monitoring developments following TCS's announcement to reduce its workforce by over 12,000 staff, according to PTI sources. Officials, cited by the news agency, claimed the IT Ministry is closely following the situation and maintaining communication with the technology company.

The ministry seeks to understand the root causes behind this development.The matter is significant as TCS, India's premier IT services company, plans to reduce its workforce by 12,261 employees, representing two per cent of its global staff this year, with middle and senior management positions bearing the majority of the impact.As of 30 June 2025, TCS employed 6,13,069 people, having added 5,000 new staff during the April-June quarter.The company announced on Sunday that this restructuring aligns with their strategy to become a "future-ready organisation", emphasising technological investments, AI implementation, market growth, and workforce reorganisation."TCS is on a journey to become a future-ready organisation. This includes strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model," it said as quoted by PTI.

"Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year," the statement further read.The company stated it would provide appropriate benefits, outplacement services, counselling, and support to affected employees.Meanwhile, the Nascent Information Technology Employees Senate (NITES) has approached Union Minister for Labour and Employment Mansukh Mandaviya, urging the government to issue a notice to TCS seeking an explanation for the company's recent decision to terminate 12,000 jobs this year.Read more: TCS layoffs prompt NITES to write to Labour Minister; IT employee union wants stay on 12,000 job lossesThe IT employees' union has described TCS' latest move as unethical, inhumane, and outright illegal. "The law clearly states that no employee who has served for over a year can be retrenched unless the company provides one month's notice or wages in lieu, pays statutory retrenchment compensation, and notifies the govt.

TCS has not complied with any of these legal requirements," NITES alleged, terming the action a blatant and wilful violation of the law.NITES also highlighted the devastating impact of the layoffs, stating that thousands of working professionals with families, EMIs, and financial commitments would suddenly lose their livelihood. "The psychological, emotional, and financial trauma of this move is unimaginable," Harpreet Singh Saluja, President of NITES, wrote in the letter.The union further contended that TCS' actions cannot be justified as restructuring. NITES also emphasised that TCS's proposed move "will normalise job insecurity, erode employee rights, and severely damage trust in India's employment ecosystem."Additionally, NITES has called for the framing of stricter safeguards for the IT sector, arguing that the industry currently suffers from a lack of enforceable employment protections. "If this injustice is not addressed immediately, NITES, along with allied IT employee unions across India, will be forced to organise nationwide protests, legal campaigns, and public demonstrations to ensure that the voices of thousands of affected employees are heard," the union stated.Market watchers believe that TCS's decision to slash 12,000 jobs this year is likely to send fresh tremors through the tech industry, which has been battling global macroeconomic woes and geopolitical uncertainty.