Karnataka government seeks clarification as TCS gears up to sack 12,000 employees
The Karnataka Labour Department is investigating reports of 12,000 layoffs at Tata Consultancy Services (TCS). The department has requested details from TCS regarding the job cuts, which reportedly affect mid-career and senior staff.
New Delhi: The Karnataka Labour Department has sought details on reports of large-scale layoffs by the Tata Consultancy Services (TCS). It has been reported that TCS has laid off 12,000 employees.
Santosh Lad, Minister of the Labour Department of Karnataka, said that they have requested the company to provide details in this regard. Speaking to media representatives in Bengaluru, he said that the department has instructed TCS officials to come and give the reason for the layoff and hold consultations about it.
Sunrise Industries does not come under the labour laws
Sunrise Industries is exempt from labour laws with certain conditions. Lad said, "We have been granting an exemption to Sunrise Industries for the last five years. This exemption has been extended every year. If they want to dismiss someone, they should inform us. We are talking to them about that."
TCS is reportedly planning to lay off 2 per cent of its employees globally this year, or about 12,261. This will affect mid-career level and senior staff. As of June 30, 2025, TCS had a total workforce of 6,13,069. It added 5,000 new employees in the April-June quarter.
The company had claimed that the layoffs were being made to prepare for future projects. The company said that this decision is being taken keeping in mind the implementation of AI, investments in the technology sector, market expansion and organisational restructuring.
CEO K Krithivasan clarified that the layoffs are not a result of AI-driven automation, but rather stem from a skills gap and a company-wide restructuring. TCS is transitioning from a traditional project-based model to a more agile, product-centric approach.
The cuts will primarily affect mid-to-senior-level employees who have struggled to adapt to the evolving technological landscape, despite significant company-sponsored reskilling initiatives. TCS has assured that affected employees will receive comprehensive severance packages, including health benefits and mental health support, along with placement assistance.