Mumbai, July 28: TCS has started feeling the heat for the layoffs announcement it made on July 27, 2025 (Sunday). The company confirmed that the TCS layoffs will affect more than 12,000 employees this year and reduce 2% of the workforce. Due to the job cuts affecting such a large number of people, employee unions have started pushing back against the Tata Consultancy Services and have asked the employees not to resign. Unions, including FITE, Karnataka State IT/ITeS Employees Union and others, have called the IT layoffs unlawful.

TCS layoffs, reprotedly called one of the largest in the country, would not announced due to artificial intelligence (AI) implementation at the operations, confirmed the CEO K Krithivasan. He also said the affected employees would receive a notice period, an added severance package and extended insurance benefits. Krithivasan said that the Tata Consultancy Services layoffs would not be a part of the company's AI implementation at the workplace, which he acknowledged was about 20% helping boost the productivity. He said it was because of a skills mismatch. TCS Layoffs: Is AI Responsibile for Massive 12,000 Job Cuts at Tata Consultancy Services? CEO K Krithivasan Cites This Reason Behind Layoff Plans.

IT Employee Union 'FITE' Asks for Withdrawal of TCS Layoffs

FITE (Forum for IT Employees), a union protecting the rights of IT professionals across India, said that TCS should not directly force the employees to resign. FITE told that the IT giant was liable to offer the employees their notice pay, a severance package, and insurance benefits for a year. Tata Consultancy Services already confirmed that it will provide the payments for notice periods, severance, and extended insurance benefits. Additionally, the IT major said to offer outplacement opportunities to the laid-off employees.

TCS Not Under Financial Distress, Still Conducting Layoffs: FITE 

Forum for IT Employees has reportedly said that TCS had not been under "financial distress" and had a stable profit-earning quarter.  In Q1 FY26, TCS reported a revenue of INR 63,437 crore and a net profit of INR 12,760 crore, according to the official TCS Financial Results document. FITE asked the company employees to document everything and not to resign voluntarily. Further, it said that employees needed to contact the State Labour Commissioner if TCS forced them to leave. Ola Krutrim Layoffs: Bhavish Aggarwal-Run AI Venture Lays Off Over 100 Employees, Says Report.

TCS Hiring Will Continue Despite Layoffs 

TCS expressed gratitude to the employees who would likely be affected. However, the IT giant said it would not slow down hiring and would continue onboarding talented individuals in the future. 

(The above story first appeared on LatestLY on Jul 28, 2025 05:09 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).