The Ministry of Information Technology is keeping a close watch on the situation after the announcement of layoff of more than 12,000 employees in the country’s largest IT services company TCS. The ministry is concerned about this development and will investigate it to understand the real reason behind this decision.
TCS Layoff: The news of Tata Group’s giant company Tata Consultancy Services (TCS) laying off about two percent of its global workforce this year is constantly in the news. The Ministry of Information Technology is keeping a close watch on the situation after the announcement of layoff of more than 12,000 employees in the country’s largest IT services company TCS. Meanwhile, there is news that TCS will put a stop on the recruitment of senior employees. Not only this, there is news that the company will also put a stop on salary hike at the global level. TCS shares fell by 2% on Monday. Today on Tuesday too, it has fallen by more than 1%. The company’s shares are trading at Rs 3,047.
What is the detail
An Economic Times report has quoted sources as saying that Tata Consultancy Services will freeze the recruitment of employees at the senior level and will also stop the annual salary hike. According to sources, senior employees are not being appointed at the moment. As per its new policy, the Tata Group company has started removing hundreds of retired employees in Hyderabad, Pune, Chennai and Kolkata in a phased manner. Under the new policy, now employees will have to find a new project within 35 days or leave the job. Let us tell you that TCS did not comment on this. In the report, an employee of a senior post said, “The problem is more serious due to the size and structure of TCS. But some other companies sensed the wave of AI change quickly and invested in it in the initial phase. We have been seeing silent restructuring at the employee level for about two quarters. It is difficult to say anything about the future right now.” What is the matter
Let us tell you that on Sunday, Tata Consultancy Services announced a large-scale layoff, which has created a stir in the IT sector. India’s largest IT services company Tata Consultancy Services is going to lay off about two percent or 12,261 employees of its global workforce this year. Most of these will be mid and senior level employees. TCS had a workforce of 6,13,069 as of June 30, 2025. In the recently concluded April-June quarter, the company increased its workforce by 5,000. TCS said in a statement that the move is part of the company’s comprehensive strategy to become a future-ready organization. Under this, the focus will be on investing in new technology areas, entering new markets, using AI extensively for customers and itself, strengthening partnerships, building next-generation infrastructure and reorganizing its workforce model.
Government’s eye
Sources said on Monday that the ministry is keeping a close watch on the entire situation in the TCS layoff case and is in constant touch with the company. According to the report, the Ministry of Information Technology is concerned about this development and will investigate it to understand the real reason behind this decision. Meanwhile, the IT employees’ organization has written a letter to Union Labor and Employment Minister Mansukh Mandaviya and requested him to seek clarification from the TCS management. At the same time, ‘Nascent Information Technology Employees Senate’ (NITES) has termed the decision to lay off 12,000 employees as unethical, inhuman and completely illegal.
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