Two months after Tata Consultancy Services (TCS) CEO K Krithivasan first confirmed a 2 percent workforce reduction, the ripple effects are still shaking India’s largest IT firm. The official figure translates to about 12,000 jobs, but unions and employees allege the actual number could be much higher—closer to 30,000. Amid protests, denials, and personal tragedies, the controversy raises hard questions about how India’s most stable IT employer is managing change.
In this article, we look into the scale of the layoffs, employee experiences, and the broader implications for India’s IT industry.
Credits: The Financial Express
Panic Spreads Beyond Official Numbers
When Krithivasan first announced the layoffs, he said they would impact mid- and senior-level associates in phases through FY26. But multiple IT unions, including AIITEU, FITE, UNITE, and KITU, argue that the real count far exceeds the communicated figure. They claim tens of thousands are being pushed out under the guise of “voluntary resignations,” a strategy that keeps the numbers off official termination records.
A TCS spokesperson, however, dismissed the speculations as “incorrect and misleading,” insisting that the impact is restricted to 2 percent of its workforce. A source close to the company also argued that such massive cuts would be operationally unfeasible, given TCS’s new deal wins.
Stories of Betrayal and Struggle
For many employees, the layoffs feel deeply personal. Take Rohan (name changed), a 35-year-old who spent 13 years at TCS. After months of alleged harassment by HR and the Resource Management Group (RMG), he refused to resign and was eventually terminated. To his shock, he was even asked to repay between ₹6–8 lakh for the time he was on bench, part of which was deducted from his gratuity and leave balances.
The financial strain was compounded by emotional trauma. Rohan is now job hunting in Pune, living with a friend, and hiding his situation from his family. “The mental torture was nothing less than living in hell,” he said.
The Atmosphere Inside TCS
Current employees describe an “environment of fear” in offices. Senior employees with 8–10 years of experience are being called into sudden HR meetings and asked to leave, sometimes with barely a week’s notice. Even those working on new technologies are reportedly being let go, creating confusion about how decisions are made.
Meanwhile, juniors are still being hired, though at a slower pace. Insiders say this offsets the layoffs in quarterly headcount metrics, masking the scale of the disruption.
The Controversial “Fluidity List”
Several employees allege that managers maintain a “fluidity list,” containing names of those to be let go. They claim the list is arbitrary, not based on performance ratings, grades, or even skills. Once on it, employees are blocked from joining new projects—even if they clear internal interviews.
Employees on the list reportedly receive calls within 30 days from HR, offering them two stark options: resign voluntarily or face termination. Project managers are allegedly instructed not to consider them for roles, and clients are sometimes given false explanations for their removal.
A source close to TCS denied the existence of an official “fluidity list,” calling it an exaggerated narrative that spreads in a large organization.
Unions Push Back
IT unions have been vocal about the impact of these layoffs. FITE’s secretary alleged that even employees with three-decade-long tenures are being shown the door within 30 minutes. UNITE’s general secretary added that some employees are pre-dated to be benched even while working on active projects—pushing them into a cycle that ends in forced resignation.
According to unions, resignation comes with certain benefits like a notice period salary, partial severance, and limited insurance coverage, but termination leaves employees with nothing.
A Shift in Tata’s “Stable Employer” Image
Historically, TCS has been perceived as a “government-like” stable employer within the volatile IT sector. But with new HR policies requiring employees to maintain 225 billable days annually and limiting bench time to 35 days, the culture appears to be shifting toward harsher productivity measures.
Krithivasan has repeatedly said the cuts are unrelated to AI-driven productivity gains, framing them instead as a response to skill mismatches and redeployment challenges. But for employees on the ground, the experience feels less like strategic restructuring and more like betrayal.
Credits: Moneycontrol
What Lies Ahead
The layoffs at TCS highlight a broader transformation in India’s IT industry, where cost-cutting, automation, and evolving client demands are reshaping workforce expectations. For employees, especially those with long tenures, the shift has been devastating. For TCS, the coming weeks are critical.
Clarity may arrive when the company declares its quarterly results and addresses the controversy publicly on October 9. Until then, chaos, fear, and uncertainty continue to dominate TCS offices across India.
