Tata Consultancy Services (TCS) has been accused by major IT employee unions, such as the Karnataka State IT/ITES Employees Union (KITU), Association of IT Employees (AITE), and Union of IT and ITES Employees (UNITE), of violating the Industrial Disputes Act by laying off 6,000 employees without following required government procedures. According to the unions, TCS has publicly acknowledged this widespread layoffs, which is against Indian law and necessitates prior consent and a methodical process. They have called for immediate action from both federal and state authorities to uphold labor laws and give impacted workers justice.
Company Data and Disputed Attrition Figures:
According to TCS’s Q2 FY26 financial disclosures, the company’s total workforce declined from 6,13,069 in Q1 to 5,93,314 in Q2, representing a reduction of 19,755 employees in just one quarter. TCS’s Chief Human Resources Officer, Sudeep Kunnumal, stated that only about 6,000 of these separations were “involuntary attrition,” while the remaining were due to voluntary resignations or routine headcount adjustments. However, unions strongly dispute these numbers and claim that the actual count of forced exits may be much higher. They argue that TCS deployed “cruel and illegal methods” making employees resign abruptly, sometimes within hours, and allege that data is being downplayed by omitting detailed headcount and attrition numbers from BSE disclosures.
Allegations of Coercion and Unfair Practices:
According to union comments, there have been instances where workers were suddenly placed on the bench, under pressure to quit, or threatened with termination if they voiced personal or health concerns. Women on maternity leave were allegedly singled out and forced to return to work or quit if they asked for benefits extensions. Employees have also allegedly been asked to attend separation meetings while having their phones and other electronics seized, supposedly in order to avoid recording evidence of coercion. Additionally, unions assert that severance benefits have not always been provided as promised, leaving many people with few options after being evicted.
Unions Mobilize Large-Scale Protests Across India:
Following the allegations of illegal retrenchments, employee unions have mobilized widespread protests in major IT hubs such as Bengaluru, Chennai, and Hyderabad to demand immediate government intervention against TCS’s actions. These protests, led by the Union of IT & ITES Employees (UNITE) and supported by other regional unions, have called attention to the harsh treatment of employees, alleging that TCS’s layoffs disproportionately affected mid-level and senior professionals who possess valuable skills and leadership. Protesters held demonstrations in front of TCS offices and staged rallies stressing that the mass layoffs were driven by profit motives rather than necessity. They also criticized the use of coercive HR tactics such as forced resignations and termination threats, calling for stricter labour regulations and enforcement to prevent such widespread job insecurity in India’s IT sector. The unions have vowed to continue their campaigns and escalate their demands if government authorities remain unresponsive.
Unions Demand Government Action and Greater Oversight:
With union leaders like Suhas Adiga (KITU), AD Jayan (AITE), and Alagunambi Welkin (UNITE) calling for sector-wide solidarity and legal action, the controversy sheds light on longstanding concerns about regulatory gaps in the IT industry. They argue that such large-scale layoffs, which come amid robust quarterly revenue for TCS, underscore the urgent need for effective governance and clear oversight in the fast-growing sector. The unions continue to urge lawmakers to address these grievances and protect workers’ rights, warning that the current exemptions and lax enforcement embolden companies to act with impunity.
