Karnataka’s labour minister Santosh Lad has raised serious questions after Tata Consultancy Services (TCS) revealed plans to let go of over 12,000 employees, roughly 2% of its global workforce. Most of those facing the axe are mid- to senior-level employees.
Calling the move “alarming,” Lad said on July 31 that the state government would be reviewing the leniency extended to sunrise companies, typically fast-growing, tech-forward firms like TCS, under existing labour laws.
The concern is not just about the numbers, but about the abruptness. “This sudden decision by TCS is a major cause for concern,” Lad told news agency PTI. His department has now summoned TCS officials for a consultation. The aim, reportedly, is to understand the reasons behind the move and see if existing labour protections were bypassed.
The Ministry of Electronics and Information Technology (MeitY) is also said to be keeping a close watch on the unfolding developments.
According to ministry sources, there’s a strong interest in understanding why one of the country’s largest IT employers is cutting staff even as India pushes for growth in tech and digital sectors.
TCS, for its part, has called the layoffs a part of its long-term transformation strategy. The company said it’s realigning its workforce to focus more on artificial intelligence (AI), tech investments, and market expansion.
“We will also be releasing associates from the organisation whose deployment may not be feasible,” said TCS in an official statement.
The company has promised outplacement support, counselling, and appropriate benefits for those affected, but many believe that’s not enough.
The Nascent Information Technology Employees Senate (NITES), an IT employee advocacy group, has approached union labour and employment minister Mansukh Mandaviya, seeking government intervention. They’ve called the move unjust and disruptive to thousands of professionals and their families.
Meanwhile, in Karnataka, the State IT/ITeS Employees Union (KITU) has filed a complaint against TCS with additional labour commissioner G Manjunath. The union accuses the company of violating key provisions of the Industrial Disputes Act, 1947. They’ve also claimed that TCS failed to comply with state-mandated rules on employee reporting during mass layoffs.
The layoffs come at a time when India’s top IT services firms are reporting sluggish revenue growth. In the first quarter of FY26, most companies posted single-digit growth rates—something industry watchers link to global economic instability and geopolitical uncertainty.
