TCS layoffs trigger anxiety as reports suggest over 30,000 jobs at risk

Over 10,000 TCS employees have reportedly sought help since June, with unions alleging forced resignations masked as attrition, while insiders claim a “fluidity list” arbitrarily targets staff for removal regardless of performance or project involvement

India’s largest IT services firm, Tata Consultancy Services (TCS), is facing mounting scrutiny over what appears to be a sweeping wave of layoffs that go beyond its officially stated numbers. Although the company earlier confirmed that only 2% of its workforce—around 12,000 employees—would be affected, insiders and union representatives suggest the real figure could be more than double.

According to national IT employee unions, over 10,000 affected workers have reached out for assistance since June, alleging that many were forced to resign instead of being formally terminated. As these resignations are voluntary on paper, they are unlikely to reflect in official layoff statistics, instead appearing under attrition rates.

"Fluidity list" and allegations of arbitrary selection

Sources within the company have pointed to the existence of an informal “fluidity list”—a document reportedly maintained by managers containing names of employees to be removed, regardless of their performance, skills, or project availability. Multiple employees claim that even those with high ratings or active project clearances have found themselves benched or blocked from assignments.

Once on the list, staff members allegedly receive pressure to resign within 30 days. Those who resist face access revocations, HR enquiries, and, in some cases, allegations like moonlighting. One employee shared that he was asked to repay bench-time expenses amounting to several lakhs.

A TCS spokesperson, however, denied these claims, stating, “The impact remains limited to 2% of our workforce, as earlier communicated.”

Unions, employees raise alarm over layoff practices

Employee unions like FITE and UNITE have organized protests and spoken out against the ongoing layoffs, citing examples of senior employees being asked to quit with minimal notice. Some allege that project deployment approvals are revoked at the last minute by HR and RMG, despite client greenlights.

“These practices violate basic workplace dignity,” said Alagunambi Welkin, General Secretary of UNITE. Severance packages vary by experience, but union leaders argue they are insufficient for long-serving staff suddenly out of work.

A culture shift at India’s largest IT employer

TCS leadership maintains that the layoffs are not AI-driven, but rather stem from role mismatches and project transitions. A new internal policy now mandates employees meet annual billability targets or face disciplinary actions, including dismissal.

With growing unrest inside TCS and rising pressure from industry bodies, many eyes are on the company’s upcoming quarterly results on October 9, where management is expected to offer further clarity.