In a recent development, the Nascent Information Technology Employees Senate (NITES) has leveled serious allegations against Tata Consultancy Services (TCS), one of India's leading IT services companies. NITES claims that TCS has forced approximately 2,500 employees in Pune to resign, sparking controversy in the tech industry.

Union's Allegations

NITES President Harpreet Singh Saluja has taken the matter to Maharashtra Chief Minister Devendra Fadnavis, seeking intervention to protect the affected employees. According to the union, the impacted workers are primarily mid- to senior-level professionals with 10-20 years of service, many of whom are over 40 years old and have significant financial obligations, including EMIs and family responsibilities.

The union has accused TCS of violating the Industrial Disputes Act, 1947. NITES alleges that the company failed to provide the required government notice and did not pay statutory retrenchment compensation. Instead, the union claims that TCS coerced employees into submitting voluntary resignations.

TCS's Response

TCS has firmly denied these accusations. The company stated that only a limited number of employees were affected by its initiative to realign organizational skills. TCS emphasized that the affected employees received due care and severance, contradicting the union's claims of unfair treatment.

Background of Layoffs

This controversy comes in the wake of TCS's announcement in June that it would lay off approximately 2% of its global workforce, which translates to about 12,261 employees. The company had indicated that these layoffs would primarily impact middle and senior grades.

Union's Appeal

NITES has called upon the Chief Minister to investigate what they term as "illegal terminations" and ensure that the affected employees receive their lawful rights. The union's intervention highlights the growing tensions between IT companies and employee representatives in India's rapidly evolving tech sector.

Industry Implications

This incident sheds light on the broader challenges facing the Indian IT industry, including workforce management, skill realignment, and the balance between corporate restructuring and employee rights. As the situation unfolds, it may prompt discussions about labor practices and employee protection in the tech sector.

The outcome of this dispute and any potential government intervention could have significant implications for both TCS and the wider IT industry in India. As stakeholders await further developments, the incident underscores the need for transparent communication and fair practices in corporate restructuring efforts.

Tata Consultancy Services (TCS), India's largest IT services company, has strongly denied social media speculation claiming it had laid off 80,000 employees. The company has clarified its position on recent workforce adjustments, emphasizing a more modest reduction as part of its strategic realignment.

Debunking Social Media Claims

TCS has categorically rejected claims circulating on social media platforms suggesting a massive layoff of 80,000 employees with varying severance packages. The company labeled these reports as "incorrect and misleading," setting the record straight on its actual workforce plans.

Actual Workforce Reduction Plan

While dismissing the exaggerated claims, TCS confirmed its previously announced strategy to optimize its workforce:

• The company plans to reduce its global workforce by approximately 2%.
• This reduction will impact around 12,000 employees, primarily in middle and senior grades.
• TCS frames this move as part of becoming a 'future-ready organisation.'

Workforce Initiatives

TCS emphasized that its workforce optimization strategy involves several key initiatives:

1. Reskilling programs
2. Redeployment efforts
3. Workforce realignment

These measures are designed to enhance the company's adaptability and efficiency in a rapidly evolving tech landscape.

Current Workforce Statistics

To put the reduction in context, TCS provided recent employment figures:

• As of June 30, TCS employed 613,069 people globally.
• The company added 5,000 employees in the June quarter, indicating ongoing recruitment despite the reduction plan.

Industry Context

The workforce adjustments at TCS come amid broader challenges in the Indian IT sector:

• Top IT services companies in India are experiencing single-digit revenue growth.
• The slowdown is attributed to macroeconomic instability and delayed decision-making by clients.

Leadership Change in HR Department

While not directly related to the workforce reduction news, the LODR data reveals an upcoming change in TCS's human resources leadership:

• Mr. Milind Lakkad, the current Chief Human Resources Officer, is set to superannuate on September 30, 2025.
• Mr. Sudeep Kunnumal, previously announced as Chief Human Resources Officer Designate, will take over the role from October 1, 2025.

This leadership transition in the HR department comes at a crucial time as TCS navigates its workforce optimization strategies.

TCS continues to maintain its position as a leading player in the global IT services market, balancing workforce optimization with strategic growth initiatives. The company's approach to addressing market rumors and providing clarity on its actual plans demonstrates its commitment to transparency in corporate communications.