TCS Layoffs: Employees Claim ‘Environment of Fear’ With Forced Resignations, Fluidity List; Spokesperson Denies Job Cuts Beyond 12,000

Mumbai, September 29: TCS layoffs have become a major talking point in the tech community since CEO K Krithivasan announced cutting 2% of the company's workforce. Previously, it was reported that around 12,000 employees had been laid off by the IT major in India; however, according to new reports, the tech sector has been facing several other issues globally, such as the H-1B visa fee hike by US President Donald Trump and the rise of artificial intelligence.

Meanwhile, IT unions and other parties have claimed that the TCS layoffs could affect more employees than the initially reported 12,000. Amid this, Moneycontrol reported that the ripple effects of the layoffs were felt across various ranks of employees, and a large wave of resignations was witnessed in the company amid panic, uncertainty, and anxiety. Accenture Layoffs: IT Consulting Giant Lays Off Over 11,000 Employees in 3 Months, Warns More Job Cuts Coming.

TCS Layoffs: How Many Employees Will Be Affected So Far?

According to the report quoting multiple sources, the actual number of TCS employees affected could exceed 12,000. A statement by a union IT member and mid-level employee suggested that the layoffs initiated by Tata Consultancy Services could have affected over 30,000 staff members. However, the report stated that there was no certainty about the exact number affected. Since TCS employees were asked to resign instead of being formally laid off, it would not show up in the company's records, he added.

On the other hand, the report included a statement from another source who mentioned that Tata Consultancy Services would not be able to function properly if massive numbers of employees were laid off or asked to resign. A TCS spokesperson stated that the numbers speculated by the public and IT unions were incorrect and misleading. He reassured that the company would only cut 2% of its employees, as previously informed.

Work Environment in TCS Amid Layoffs

The report mentioned that one employee still working at Tata Consultancy Services said that in his office, there was an "environment of fear." He pointed out that employees with 8–10 years of experience were being laid off by the company. Many individuals received emails from HR asking them to immediately leave the company, he added. He further said that juniors were being added at a slower pace and assigned projects by TCS, ramping up hiring. The employee said that the affected numbers would be reflected in the second quarter ending 31 September 2025.

An employee with 13 years of experience was forced to resign after five months of "harassment" by HR and RMG (Resource Management Group), which left him feeling betrayed for his loyalty. He was terminated when he did not resign and was paid INR 6–8 lakh for the time he was on the bench. The report said that only half of that amount was adjusted from his gratuity and paid leaves, and the rest was settled by the company. He said he did not even inform his family, wife, and children back in his hometown.

Employees Claim 'Fluidity Test' Used by TCS for Layoffs

Many TCS employees claim a so-called "fluidity list" was used to determine layoffs. It was used to lay off employees without regard to skills, experience, or performance. Names on this list block employees from new projects, and HR reportedly pressures them to resign voluntarily or face termination. An employee said that clients are given false reasons for removal, such as "employee is unwell" or "childcare issues," while the process is described as “mental harassment” and a “mockery of policies,” rather than a fair, performance-based exit.

IT Employees Condemning TCS Layoffs Move

Regarding the tech layoffs, many IT employee unions, particularly FITE (Forum of IT Employees) and UNITE (Union of IT & ITES Employees), have raised concerns about the manner in which they were carried out. FITE Secretary Prashant Pandit said that people with 30-year tenure were asked to leave in 30 minutes, saying employees were abused by IT companies. UNITE General Secretary Alagunambi Welkin stated that newly benched employees had to first find projects through rounds of meetings and then get client clearance. Following this, HR and RMG would cancel their project deployment. After termination, the employees would not receive any pay.

Welkin said that the employees would be offered three months’ notice and severance based on years of experience, amounting to "15 days of salary multiplied by the number of years of experience." Salesforce Layoffs: CEO Marc Benioff Reveals Company Laid Off Around 4,000 Employees Amid Implementation of AI at Workplace, Says ‘8 of the Most Exciting Months of My Career’.

TCS Layoffs Plans Announced by CEO K Krithivasan and HR Policies

TCS CEO K Krithivasan said that the company's ways of working were changing amid the deployment of new technology like AI and operating models while evaluating the skills the company would require in the future. In June, TCS asked employees to approach RMG for project assignments to maintain 225 billable days annually as per a new policy. If employees missed the "billability" target, they would face disciplinary action, including cessation of service. Employees were also instructed not to remain on the bench for more than 35 days per year.

(The above story first appeared on LatestLY on Sep 29, 2025 08:26 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).