Key Points
- Tata Consultancy Services (TCS) is implementing its biggest-ever layoff, cutting 12,000 jobs (2% of its global workforce), mainly affecting mid and senior management.
- All senior-level appointments and salary hikes have been suspended for FY25, with no fixed date for resumption; ongoing cost-cutting is reported.
- Employees not assigned to active projects within 35 days face termination under a strict new deployment policy, sparking widespread notice and anxiety.
- TCS is restructuring to catch up in artificial intelligence (AI) after slow adoption, raising questions about its competitive edge.
- IT union NITES has filed its third complaint to the Ministry of Labour, calling the mass terminations unlawful and demanding a government inquiry.
New Delhi: India’s IT bellwether Tata Consultancy Services (TCS) has entered a turbulent phase in 2025, captured by a wave of layoffs, a freeze on senior hiring and promotions, and deep uncertainty over salaries and workforce stability. The news comes as the global IT landscape is transformed by automation, cloud computing, and especially artificial intelligence (AI) an area where TCS is seen as lagging compared to nimbler global rivals.
12,000 Layoff Shock and Restructuring
TCS has confirmed it will lay off 12,000 employeesnabout 2% of its global staff by the end of FY26. The cuts target primarily middle and senior level roles, many of whom have spent over a decade with the firm. CEO K Krithivasan attributed the move to the need to realign skills with TCS’s pivot toward generative AI, cloud, and automation services. The layoffs are staggered but have already seen mass notices issued in metros like Pune, Hyderabad, Kolkata, and Chennai.
“Bring a Project or Leave” The New Bench Policy
A stricter version of TCS’s infamous “bench” system is now in effect:
- Employees must be allocated to a client project for at least 225 business days per year, with only 35 non-project (bench) days allowed annually.
- If not placed in a new assignment within 35 days, staff face reduced compensation, slower career growth, or termination.
- Skilling and upskilling on internal digital platforms is now mandatory for benched staff, who must actively seek new projects or risk exit.
Hiring, Promotions, and Pay Hikes Frozen
- Salary hikes traditionally due in April 2025 have been deferred to an unspecified later date, citing global economic uncertainty, project slowdowns, and delayed client decisions.
- Senior and mid-level hiring, especially lateral/experienced roles, is paused or significantly delayed. Some appointments are in limbo for over two months due to cost cutting and HR reviews.
- Meanwhile, the company has continued intake of freshers, but lateral onboarding for experienced hires is reportedly stuck due to both bench management and budget restraints.
Employee Outcry and Union Action
The employee union NITES (Nascent Information Technology Employees Senate) has filed multiple complaints to the Ministry of Labour, alleging unlawful mass layoff practices, lack of due process, and violation of labor laws requiring government notice and proper compensation. NITES warns of nationwide protests if job cuts go unchecked and has demanded an immediate halt to all terminations.
AI, Skills Gap, and Industry Watch
Internal sources and market analysts cite TCS’s “large, traditional structure” as a hurdle in embracing AI and new-age technologies in contrast to peers who moved quickly to upskill and pivot. The sluggish restructuring, delayed digital investments, and skill mismatches are now visible in workforce turbulence and missed opportunities.
TCS, long seen as a pillar of India’s tech industry, faces mounting challenges in an era defined by rapid technological change. With mass layoffs, a hiring freeze, and salary hikes on hold, employee unrest is growing, and union pressure is mounting. The next several quarters are critical for TCS: Can it catch up in the AI race and re-stabilize its workforce, or will further fissures emerge in one of India’s flagship companies?
