In the wake of the layoffs of over 12,000 employees announced by the Tata Consultancy Services (TCS), Karnataka Labour Minister Santosh Lad stated that his department has asked the company to explain its reasons behind the decision.
“Yesterday, we got information that TCS has laid off 12,000 employees. Our department has called TCS officials just to have a consultation to know the reason,” Lad stated, adding, “We have kept the sunrise companies outside the ambit of labour laws, and for the past five years, we have been giving them exemption year after year. But there are conditions attached. If they want to lay off somebody, they have to give us information. Accordingly, we are talking to them.”
In a recent interview with Moneycontrol, TCS Chief Executive Officer (CEO) K Krithivasan shared that the company is planning on laying off about 2% of its workforce by the end of the fiscal year 2025-2026 (FY26).
“We expect it will be about 2% of the global workforce, mostly in the middle and senior levels. We may have to let them go because most importantly, the effectiveness of deployment or feasibility of deployment is not possible. This is definitely not an easy time for us, not an easy time for the associates, because we have not done this before. It’s a difficult call we have to take. We have been doing this with a lot of compassion and empathy with proper benefits, counselling, outreach and support,” said Krithivasan.
The layoffs have given rise to many conversations, with union lodging protest and government agency like Karantaka’s labor department keeping an eye on the situation as it develops.