The Labour Ministry has summoned Tata Consultancy Services (TCS) on Friday, August 1, following a complaint by the Nascent Information Technology Employees Senate (NITES). The summons comes amid rising concerns over the company’s recent layoffs and delays in onboarding new recruits.
According to reports, TCS is expected to provide a detailed explanation regarding two key issues: the planned reduction of 2% of its workforce — impacting around 12,000 employees — and the pending onboarding of 600 professionals.
Business Today was unable to verify the development independently.
NITES had earlier slammed the company’s actions, labelling the layoffs “inhumane,” “unethical,” and “outright illegal.” The Karnataka State IT/ITeS Employees Union (KITU) has also stepped in, filing an industrial dispute against TCS for alleged violations of the Industrial Disputes Act, 1947. KITU argued that TCS failed to comply with legal obligations that require prior government approval for large-scale layoffs.
KITU representatives met Additional Labour Commissioner G Manjunath on Wednesday, submitting a formal complaint outlining multiple employee grievances. The union demanded criminal proceedings against responsible officials and immediate intervention by the Labour Department.
Earlier this week, TCS confirmed its intention to cut 2% of its global workforce in the financial year 2026. TCS, India’s largest private employer, will lay off 12,200 employees by March 2026, marking the most significant workforce reduction in the company’s 50-year history.
The move comes amid rising pressure from artificial intelligence (AI), changing client demands, and slow revenue growth, sending shockwaves across India’s $245 billion IT industry. The layoffs were confirmed in a company statement. TCS said the decision was part of a broader plan to become “future-ready,” involving realignment of the workforce, AI deployment at scale, and new investments in next-gen technologies and markets.
“As part of this journey, we will also be releasing associates from the organization whose deployment may not be feasible,” the company stated. The job cuts will affect around 2% of TCS’s global workforce of 613,069, largely targeting mid- and senior-level employees — especially those with 10 or more years of experience.
