Karnataka Labour Minister Santosh Lad has expressed serious concerns over the recent announcement by Tata Consultancy Services (TCS) regarding a reduction of its global workforce by 2%, which translates to approximately 12,261 employees. Minister Lad has termed the mass layoffs as "alarming" and has taken immediate action by summoning TCS officials for a consultation to understand the reasons behind this decision. The Labour Minister's office has also scheduled a conciliation meeting with TCS on August 6, 2025, to further discuss the matter.
TCS's decision to lay off a significant number of employees, primarily from middle and senior-level positions, has triggered concerns about potential violations of labor laws. The Karnataka State IT/ITeS Employees Union (KITU) has filed a complaint with the Additional Labour Commissioner, G Manjunath, alleging that TCS is contravening the Industrial Disputes Act, 1947, by not seeking prior government approval for the layoffs and for allegedly forcing employees to resign. KITU is demanding legal action against TCS management for these alleged violations.
Minister Lad has emphasized that while "sunrise industries" in Karnataka have been granted certain exemptions from labor laws, these exemptions are conditional. He stated that companies are obligated to provide the government with information regarding any planned layoffs. The Labour Department is also scrutinizing whether TCS has adhered to these conditions.
TCS has stated that the layoffs are part of a broader realignment strategy to become a "future-ready organization". This strategy involves focusing on investments in technology, AI deployment, market expansion, and organizational restructuring. TCS CEO K Krithivasan clarified that the job cuts are not solely due to AI-led efficiency gains but are part of a plan to enhance the company's agility and prepare it for the future. He added that TCS will continue to seek and train talent, focusing on the redeployment of employees where feasible. TCS has already trained over 550,000 employees in basic AI and approximately 100,000 in advanced AI.
In addition to addressing the TCS layoffs, Minister Lad has also raised concerns about the IT sector's request to increase working hours to nine or ten hours per day. The government is not in favor of increasing working hours but will consider the request only if employees are willing, ensuring that no employee is forced to work longer hours against their will. Minister Lad also noted the practical difficulties of implementing longer working hours, given that many employees spend a significant amount of time commuting.
The Union Ministry of IT is also closely monitoring the situation and plans to investigate the underlying reasons for TCS's decision. The Nascent Information Technology Employees Senate (NITES) has appealed to the Union Minister for Labour and Employment, Mansukh Mandaviya, to issue a notice to TCS seeking an explanation for the layoffs.
As of June 30, 2025, TCS had a global workforce of 613,069 employees, with the company adding 5,000 new employees in the first quarter of fiscal year 2026. The upcoming meeting between the Karnataka Labour Department and TCS is crucial to address the concerns surrounding the layoffs and ensure compliance with labor laws.
