UNITE protests TCS’s 12,000 layoffs, accusing the tech giant of replacing experienced staff with freshers
TCS Faces Union Uproar Over 12,000 Layoffs – India’s largest IT services firm, Tata Consultancy Services (TCS), finds itself at the center of a growing storm as the Union of IT and ITES Employees (UNITE) launches nationwide protests against the company’s decision to lay off 12,000 mid- and senior-level employees. The move, part of a broader restructuring strategy, has sparked outrage across the tech sector, with union leaders alleging that the actual number of job cuts could be far higher and that experienced professionals are being replaced by freshers at a fraction of the cost.
Table of Contents
The Spark: Layoffs and Allegations of Corporate Greed
TCS announced in July 2025 that it would reduce its workforce by approximately 2%, translating to around 12,000 employees. The company cited a strategic shift toward cloud, AI, and digital transformation as the reason for the layoffs, emphasizing the need to build a “future-ready organization.” However, UNITE claims the layoffs disproportionately target experienced professionals, many of whom hold leadership roles, and that the real number of affected employees could reach 30,000 or more.
Union leaders have accused TCS of corporate greed, pointing to the company’s robust financials, ₹2.55 lakh crore in revenue, a 24.3% operating profit margin, and ₹45,588 crore in dividends as evidence that the layoffs are not economically justified. Protesters have also criticized the government for its silence, especially as TCS continues to receive public contracts despite the mass retrenchments.
Placards at protests labelled top executives as “Chief of Cruelty” and “Chief of Corporate Greed,” underscoring the emotional intensity of the backlash.
Voices from the Ground: Union Demands and Employee Concerns
UNITE, which has around 300 members including 50-60 from TCS, staged multi-city demonstrations in collaboration with the CPI(M)-affiliated Centre of Indian Trade Unions (CITU). The union is demanding that TCS halt the layoffs, re-skill and up-skill affected employees, and engage in transparent dialogue with labour authorities.
Chandra Shekar Azad, Joint Secretary of UNITE, stated, “The only common factor among those laid off is experience. It’s not about performance or upskilling, it’s about cost-cutting.” He added that the uncertainty has trickled down to teams, affecting morale and productivity.
Union members also raised concerns about poor infrastructure at TCS’s Siruseri campus, where mandated upskilling tools are reportedly inaccessible on personal devices. Employees are forced to borrow laptops to complete training, further complicating compliance with internal policies.
TCS Faces Union Uproar – Government Intervention and Legal Scrutiny
The protests have prompted labour authorities in Karnataka to initiate a review under the Industrial Disputes Act, 1947. TCS executives met with officials and representatives from the Karnataka State IT/ITES Employees Union (KITU) to address allegations of labor law violations. Authorities have asked the union to submit a list of grievances from affected employees and emphasized the need for due process and fair compensation.
While TCS maintains that the layoffs are limited to 2% of its global workforce and denies any wrongdoing, the union is preparing to escalate its campaign internationally. UNITE General Secretary Alangunambi Welkin announced plans to collaborate with global trade organizations if the government fails to act.
This legal and diplomatic pressure could set a precedent for how India’s tech giants handle workforce transitions in an era of rapid digital evolution.
Industry Implications: A Shifting Tech Landscape
The TCS layoffs come at a time when the IT industry is undergoing significant transformation. According to Nasscom, companies are pivoting toward product-aligned delivery models, which may lead to workforce rationalization and a reevaluation of traditional skill sets.
While TCS has promised severance packages and transition support, critics argue that the company’s approach lacks empathy and foresight. Replacing seasoned professionals with freshers may reduce short-term costs, but it risks eroding institutional knowledge and weakening leadership pipelines.
For many, the protests are not just about job losses, they’re about the future of work in India’s tech sector. As automation, AI, and cloud computing reshape the industry, the challenge lies in balancing innovation with inclusivity and ethical employment practices.
TCS’s restructuring may be aimed at future-readiness, but the fallout has exposed deep fissures in how corporate India manages change. With unions mobilizing, legal scrutiny intensifying, and public sentiment shifting, the company faces a critical juncture. Whether it chooses dialogue over dismissal, empathy over efficiency, will determine not just its reputation but the broader narrative of India’s digital workforce evolution.
Also read – TCS Salary Freeze Shocks Workforce: HR Chief Blames “Macroeconomic Uncertainty” Despite Q1 Surge