TCS headcount falls below 6L amid layoffs
What's the story
Tata Consultancy Services (TCS), India's largest IT services company, has witnessed a massive drop in its employee headcount. The company's workforce fell by nearly 20,000 in the September quarter of this fiscal year. This comes as part of TCS's ongoing efforts to restructure its workforce and adapt to changing business dynamics. The company's headcount now stands at 5,93,314 employees compared to 6,13,069 in the June quarter.
Restructuring plan
Layoffs contested by IT workers' union NITES
TCS's Chief Human Resources Officer, Sudeep Kunnumal, confirmed that the company has laid off around 1% or 6,000 employees as part of a recent restructuring. However, this figure has been strongly contested by the IT workers' union Nascent Information Technology Employees Senate (NITES), which claims a net workforce reduction of 19,755 in just one quarter.
Strategic shift
TCS had announced layoffs of 12,261 employees in July
Back in July, TCS had announced plans to lay off around 2% or 12,261 employees of its global workforce this year. Most of those impacted were from middle and senior grades. The company said this was part of a larger strategy to become a "future-ready organization," focusing on technology investments, AI deployment, market expansion, and workforce realignment.
Disputed figures
Unions allege pressure tactics to force employee resignations
Despite TCS's claims, unions have disputed the reported layoff numbers. They have also accused TCS of using pressure tactics to force employees into resigning. During an investor call, TCS had said it has "released" 1% of its workforce, mainly mid and senior-level employees whose skills and capabilities were mismatched. The company added that it is providing impacted employees with benefits, counseling, outplacement support for their transition, as well as severance at terms higher than industry standards.
Allegations
Deliberate attempt to downplay retrenchments
NITES has accused TCS of underreporting layoffs, saying nearly 8,000 employees have disappeared from the rolls. The union claimed this isn't a minor difference but a deliberate attempt to downplay retrenchments and mislead regulators, policymakers, and the public. They also noted that the reduction is alarming as attrition has actually fallen during this period, suggesting these exits were management-driven rather than voluntary.
Criticism
Union's scathing rebuke of TCS's actions
NITES has criticized TCS for prioritizing profits over people, calling the company's actions "corporate cruelty." The union's president, Harpreet Singh Saluja, said, "TCS has chosen profits over people, turning its workplace into a fear factory and betraying the very workforce that built its empire." This statement highlights the deep discontent among employees and their representatives regarding TCS's recent restructuring decisions.