IT union urges Maharashtra CM to act against TCS layoff of 2,500 workers

NITES alleges TCS forced over 2,500 long-serving employees to resign under the guise of voluntary exits, violating the Industrial Disputes Act, despite a Labour Ministry advisory in August urging the company to halt such terminations

 

 

The National Information Technology Employees Senate (NITES) has intensified its campaign against Tata Consultancy Services (TCS), urging Maharashtra Chief Minister Devendra Fadnavis to step in over the alleged forced exits of nearly 2,500 mid-to-senior-level employees in Pune.

According to NITES, several affected professionals, many with over a decade of service, were pressured into resigning under the pretext of voluntary separation. The union claims this practice violates provisions of the Industrial Disputes Act, 1947, and calls it a misuse of restructuring processes.

The matter had earlier been flagged to the Ministry of Labour in July 2025. Despite a ministry advisory in August directing TCS to review its actions, the union alleges that the IT giant continued with terminations, raising concerns about compliance and corporate accountability.

Industry impact and TeamLease hiring trends

The TCS controversy emerges against a backdrop of evolving hiring patterns in India’s IT sector. While staffing firm TeamLease Services reported a robust Q1 FY26 performance—with a 27.7% jump in net profit to ₹26.5 crore and 12.1% growth in revenue—the company also noted ongoing caution in specialized IT hiring.

TeamLease’s Specialized Staffing segment, contributing 6% to overall revenue, continues to feel the pressure of weak demand, especially in IT roles impacted by macroeconomic factors and H-1B visa uncertainties. Headcount in this segment saw a slight decline from 279 to 271 during the quarter.

To mitigate the slowdown, the company is shifting focus toward Tier-2 IT hubs, Global Capability Centers (GCCs), and digital skill areas. TeamLease is also strengthening its presence in non-IT verticals and expects this diversification to support a 30% Ebitda growth target for FY26.

The company aims to improve overall margins to 7.0–7.2% by year-end, leveraging its General Staffing and HR Services divisions to balance the downturn in IT-specific hiring.

As the TCS layoffs spark legal scrutiny and public outcry, they also highlight deeper shifts in the IT employment landscape—where even industry leaders are grappling with cost optimization amid changing global and domestic pressures.