TCS Layoff Controversy: Forced Resignation Allegations Spark Outrage

Bangalore: Tata Consultancy Services (TCS) is facing intense backlash from employees and trade unions following an internal memo that revealed plans to trim its global workforce by approximately 12,000 employees. The news has sparked significant concern, especially among mid-level staff.

This decision follows the implementation of TCS’s new “bench policy” introduced in June, which critics say indirectly facilitates layoffs by imposing tighter restrictions on employees not currently assigned to projects.

Accusations of Coerced Resignations

Reports have emerged that employees, particularly those on the bench, are being pressured to resign. These individuals are allegedly being told they risk termination without severance, denial of full and final settlements, and even blacklisting if they refuse to submit voluntary resignations.

In TCS, employees “on the bench” are those not presently allocated to active projects but remain on the company’s payroll. The revised policy now limits bench time to just 35 days per year, effectively transferring the responsibility of finding project assignments onto the employees themselves.

A mid-level employee, speaking anonymously, claimed that in the past fortnight alone, several hundred staff at the company’s Bengaluru facility were forced to resign under pressure. “People are being enticed with offers of a few months’ salary if they agree to quit. If they don’t, they are intimidated with threats of being terminated without any documentation or clearance,” the employee said.

According to the same employee, TCS has now begun instructing managers to identify and report a fixed number of “non-critical” team members from ongoing projects. “Previously, the focus seemed to be only on bench employees. But now, even those currently assigned to projects are worried about their job security,” they added.

Union leaders have confirmed that employees from the company’s offices in Hyderabad, Kolkata, and Bengaluru have reached out for assistance. “If these terminations are carried out under the bench policy, there are legal grounds for challenging them. But if employees are made to resign voluntarily, their options become extremely limited,” explained Mr. Saluja.

In response to the growing crisis, multiple unions including the Karnataka State IT/ITeS Employees Union (KITU), AIITEU, and NITES, have started help-desk hotlines for employees facing pressure to resign.

KITU emphasized that, under the Industrial Disputes Act, employers cannot lawfully compel employees to resign. “Each employee has the right to resist a forced resignation,” said the union. KITU further demanded immediate government action, stating that companies with over 100 employees must seek prior approval from the government before initiating any form of mass retrenchment.

“We urge all affected employees not to panic and to stand their ground. No one can legally force you to resign. Organise, resist, and reach out,” the statement continued, offering full support and urging reinstatement of all dismissed workers. Helpdesk Numbers: 9663458279 / 9742045570

This large-scale workforce reduction appears to be a cost-cutting response to economic slowdown in North America, along with wider global uncertainties and the rising use of AI. Insiders say TCS’s internal initiative, known as “Project Fluidity,” aims to phase out mid- and senior-level professionals and replace them with lower-paid, less experienced staff to protect profit margins.

However, such layoffs must comply with Indian labour laws, which require companies to obtain official permission from the government for workforce reductions of this scale. Failure to do so constitutes an unlawful act under the law.