New Delhi: Congress leader Jairam Ramesh on Monday said the news of Tata Consultancy Services (TCS) laying off 2 per cent or more than 12,000 employees is a “one-time tremor” which has triggered an economic earthquake.
The IT giant which has a total headcount of 6.13 lakh employees as of June 2025, plans to implement the layoffs across various domains and geographies. In a statement, the company said the layoffs would primarily impact middle and senior grades. TCS CEO K Krithivasan described the decision as “one of the toughest” he had to make.
Ramesh said in a post on X that “TCS — the creation of the great F.C. Kohli and the pride of India — has triggered an economic earthquake by its announcement of 2 per cent layoff in upper management”.
“It has been explained as the result of a skills mismatch. Whatever that means, the news is worrisome and the nation can only hope that it is a one-time tremor,” he added.
The company is offering severance packages, extended insurance, notice period pay, and placement assistance in finding alternative job opportunities, according to the reports. TCS said that the layoffs are not motivated by cost-cutting or automation, but rather by the challenges of redeploying talent whose current roles no longer align with the company’s evolving skill requirements. The IT giant is currently focusing on large-scale deployment of artificial intelligence (AI) and other new technologies, which are reshaping demand across the IT sector.
The Nascent Information Technology Employees Senate (NITES) has also reportedly filed an official complaint against TCS, alleging that “TCS has planned to terminate thousands of employees without giving them due notice or any prior intimation to the government, all of which are mandatory under existing Indian labour laws”.
Meanwhile, the IT Ministry is keeping an eye on the TCS decision to lay off more than 12,000 employees. India’s largest IT company on Sunday announced its plans to reduce its workforce by 2 per cent or roughly over 12,000 employees in FY26.
(IANS)
