Kerala IT forum Prathidhwani terms TCS layoffs ‘illegal mass retrenchment’: What prompted the sharp criticism?

Prathidhwani, the welfare and recreation forum of Infopark employees in Kerala, has raised sharp objections to Tata Consultancy Services’ (TCS) decision to release 2% of its global workforce. In a strongly worded statement shared on its official Facebook handle on Monday, the group termed the move an “illegal mass retrenchment”.

“We at Prathidhwani, the welfare organisation of IT employees in Kerala, express serious concern over TCS’s decision to release 2% of its global workforce, mainly in the middle and senior levels,” it said.

While acknowledging the company’s need for transformation, the forum insisted that large-scale layoffs—particularly of experienced professionals—must not become the default route. The group warned of “long-term social and economic impacts on employees and their families”.

The forum called on TCS to ensure transparency, fairness, and provide meaningful reskilling and redeployment opportunities, in addition to robust support systems for impacted staff.

“We stand in solidarity with all impacted employees and will continue to raise this issue with authorities to ensure ethical and responsible workforce practices in the IT industry,” it added.

Earlier, Prathidhwani had flagged abrupt onboarding delays affecting candidates in Thiruvananthapuram and Kochi. It stated that experienced professionals with confirmed offers had their hiring suddenly disrupted, urging timely intervention to safeguard their interests. Similarly, the Nascent Information Technology Employees Senate (NITES), a Pune-based IT employees’ union, escalated the matter by filing a formal complaint with the Ministry of Labour and Employment. The complaint cited indefinite onboarding delays faced by over 600 experienced professionals, many of whom had resigned from previous jobs based on confirmed TCS offers.

The complaint noted that several professionals were informed of the postponement on their scheduled joining dates, causing distress due to financial and personal obligations.

Following the complaint, the Labour Ministry has reportedly taken cognisance and summoned the company’s leadership to appear before the Chief Labour Commissioner in New Delhi on August 1. According to ETHRWorld.com, the chairman and managing director of TCS is expected to attend the meeting.

TCS cites realignment, AI, evolving business needs

TCS, India’s largest IT services firm, recently announced that 12,261 employees—about 2% of its global workforce—will be released this year. Most of the affected employees are in the middle and senior grades.

As of 30 June 2025, TCS’s total workforce stood at 6,13,069. Despite the layoffs, the company added 5,000 employees in the April–June quarter.

In a statement, TCS said the move is part of its journey to become a “Future-Ready organisation”, through AI deployment, new market entry, and strategic realignment of workforce models.

“Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible,” the company said.

TCS added that it would provide appropriate benefits, counselling, and outplacement support to those impacted. The company also admitted to onboarding delays, attributing them to shifting business requirements and deal-closure timelines, while assuring that all offers will be honoured.

Revenue slowdown and cautious outlook

TCS reported subdued growth in Q1FY26. Revenue rose by 1.3% year-on-year to Rs 63,437 crore, while net profit increased by 5.9% to Rs 12,760 crore. CEO K Krithivasan attributed the slowdown to macroeconomic and geopolitical uncertainty.

“We are experiencing a demand contraction due to continued uncertainties,” he said, adding that delays in client decision-making had “intensified” in the June quarter. He stated that a double-digit revenue growth in FY26 was unlikely.

Microsoft, global tech sector face similar strain

Microsoft, the world’s second most valuable publicly listed company after Nvidia, has laid off over 15,000 employees in 2025—7% of its global workforce. In a memo to employees, CEO Satya Nadella admitted the decision was “weighing heavily” on him.

“This is the enigma of success in an industry that has no franchise value,” Nadella wrote. “Progress isn’t linear. It’s dynamic, sometimes dissonant, and always demanding.”

According to Layoffs.fyi, a platform tracking global tech layoffs, over 80,000 workers have lost their jobs in 2025 across 169 companies. In 2024, that number was a staggering 1.5 lakh across 551 firms. The wave of job cuts has raised deep concerns about AI’s impact on employability and workforce stability amid prolonged economic headwinds.