Employees of Tata Consultancy Services (TCS) are facing anxiety and uncertainty amid large-scale layoffs across the company, with several being asked to leave citing reasons such as poor performance, lack of projects, and an economic slowdown in the US and Europe.
In August, TCS had announced plans to reduce its workforce by around 12,000 employees, attributing the move to the growing adoption of Artificial Intelligence (AI). However, several employee unions claim the actual number of job losses is much higher — between 50,000 and 100,000.
Alagunambi Welkin, general secretary of the Union of IT and ITES Employees (UNITE), alleged that TCS is using “coercion and pressure tactics” to force employees to resign. “Some HRs are even employing labour lawyers and threatening to withhold salaries, provident fund and gratuity payments,” he said.
Welkin further claimed that in the company’s Siruseri campus in Chennai, employees are called in for “separation meetings” and made to sit away from their colleagues. “There are three rooms where a psychiatrist, a general physician and an HR representative are stationed,” he added.
TCS has, however, insisted that these speculations are incorrect and misleading. “As communicated earlier, the impact is limited to 2% of our workforce. Those who have been affected have been provided due care and severance, as is due to them in each of the individual circumstance," a company statement said.
But employees say a different story. A former employee, whose last working day was September 8, said HR officials had contacted some laid-off employees even after their exit. “We got calls more than 15 days after leaving, asking if we wanted to meet a psychiatrist,” the employee said.
Suhas Adiga, general secretary of the Karnataka State IT/ITES Union (KITU), said the union has filed an industrial dispute case against TCS with the Karnataka Additional Commissioner of Labour. “The next hearing is scheduled for October 15,” he said.
The employee quoted above, who worked with TCS for 19 years, said he is still awaiting his relieving letter and full and final settlement. “I was promised three months’ severance pay. This was my first job, and I was recruited through campus placement,” he said, adding that he was asked to resign after taking three months’ leave following a family bereavement. “The HR considered my leave as bench time. That’s not fair,” he said.
A second employee, who served 13 years at the company, alleged he was forced to resign without completing his notice period. “I received 10 months’ severance pay, not the two years some media reports have mentioned. I’m still waiting for my relieving letter,” he said.
According to Welkin, TCS initially denied severance pay but later agreed to offer up to 12 months’ salary after protests. “Even that is not uniform — not everyone is receiving it. I’ve spoken to hundreds of employees who were forced to resign,” he said.
Employees have also alleged delays in gratuity and final settlement. “Our gratuity forms haven’t been processed. We are waiting for communication from the company,” one of them said, adding that some affected workers plan to approach the courts.
Harpreet Singh Saluja, president of Pune-based Nascent Information Technology Employees Senate (NITES), said the union has lodged a complaint with Maharashtra Deputy Chief Minister Devendra Fadnavis and secured a meeting with him.
Welkin also alleged that women employees on or returning from maternity leave are being asked to resign or take leave without pay. “As the US situation worsens, more layoffs are expected. Based on the data we’ve gathered, the number could exceed 50,000 by March-end,” he said. “In Tamil Nadu alone, about 50 employees are being called for separation meetings daily.”
An employee at a TCS delivery centre in Chennai said there is widespread panic among staff. “No one knows who will be called next by HR,” the employee said.
