Karnataka minister orders probe into labor laws after TCS layoffs
What's the story
Karnataka's Labor Minister, Santosh Lad, has announced an investigation into the leniency of labor laws for sunrise companies in light of Tata Consultancy Services (TCS)'s recent announcement to lay off over 12,000 employees. The move comes after TCS revealed plans to cut around 2% of its global workforce this year, mostly targeting middle and senior-level employees.
Reaction
TCS layoff major cause of concern, says Lad
Expressing his concern, Lad told PTI, "TCS laying off 12,000 is alarming; will look into labor law leniency given to sunrise companies." He added that this sudden decision by TCS was a major cause for concern and that he would be looking into the reasons behind it. The minister also said his department has summoned TCS officials for a consultation on the matter.
Government response
Ministry, NITES approach government seeking intervention
The Ministry of Electronics and Information Technology (MeitY) is also closely monitoring the situation arising out of TCS's decision. The ministry is concerned about this development and will look into the underlying reasons that prompted such a move by the company. Meanwhile, the Nascent Information Technology Employees Senate (NITES) has approached Union Minister for Labor and Employment Mansukh Mandaviya seeking government intervention in this matter.
Company statement
TCS wants to become a 'future-ready organization'
TCS has clarified that the workforce reduction is part of its larger strategy to become a "future-ready organization." The company plans to focus on technology investments, artificial intelligence (AI) deployment, market expansion, and workforce realignment. TCS had said in a statement, "As part of this journey, we will also be releasing associates from the organization whose deployment may not be feasible."
Employee support
Top IT firms report single-digit revenue growth in Q1 FY26
TCS had also assured that it would provide appropriate benefits, outplacement, counseling, and support to the affected employees. This comes as India's top IT services companies have reported single-digit revenue growth in Q1 of FY26 due to macroeconomic instability and geopolitical tensions affecting global tech demand and client decision-making.
Union objection
KITU files a complaint against TCS
The Karnataka State IT/ITeS Employees Union (KITU) has strongly opposed the layoffs and filed a complaint against TCS with Additional Labor Commissioner G Manjunath. The union is seeking legal action against the company's management for violating provisions of the Industrial Disputes Act, 1947, and failing to meet conditions set by the Karnataka government regarding employee status reporting.