"TCS is facing heat over layoffs and allegations that internal competency exams are being used to force resignations. Here’s a simple breakdown of what’s going on."
Why is TCS in the news right now?
Tata Consultancy Services (TCS), one of India’s biggest IT companies, is at the centre of a heated debate. Allegations suggest that internal competency exams with high passing thresholds are being used to push employees out of the organisation. This controversy comes during a time when the company is also undergoing major layoffs and restructuring.
Are internal exams being used to force resignations?
The Forum For IT Employees (FITE) claims that TCS is using internal assessments to reduce staff without officially calling it a layoff. According to reports, exams require a 70–80% passing score — and failing them could lead to termination. One widely shared case involved a female employee who was denied alimony on the basis of her employment but later lost her job after failing the exam. FITE argues that this raises serious concerns about fairness and transparency.
To push for accountability, FITE has demanded that TCS release exam papers and scores. According to the union, when a test affects a person’s livelihood, employees deserve full visibility into how they are evaluated.
How many employees are affected by the layoffs?
In July 2025, TCS announced it would reduce around 2% of its global workforce. At the time, that meant nearly 12,000 jobs — mainly among mid- and senior-level leaders — to become "more agile" amid global tech disruptions. By October 2025, the company confirmed that it had already released about 6,000 employees as part of restructuring. Severance pay, extended medical insurance and outplacement support have been offered to those impacted.
| Month | Layoff Update | Employees Impacted |
|---|---|---|
| July 2025 | Layoff announcement | ~12,000 expected |
| October 2025 | Confirmed layoffs | ~6,000 released |
As of September 2025, TCS’ headcount dropped to 593,314. This was a net reduction of nearly 19,755 employees compared to previous quarters.
What actions are employee unions taking?
Employee unions have stepped in strongly. The Nascent Information Technology Employees Senate (NITES) has filed complaints regarding forced resignations, illegal terminations, and withheld dues. As a result, the Labour Commissioner’s Office in Pune has summoned TCS for a formal hearing on November 18, 2025.
On social media, FITE has tagged Maharashtra Labour Minister Akash Fundkar asking for government intervention. The issue is quickly gaining attention across the Indian IT workforce because many employees believe these practices could spread industry-wide if left unaddressed.
Why is this sparking a larger debate about IT labour rights?
The controversy has turned into a conversation about labour laws in India’s IT sector. Critics argue that software professionals face intense hiring-and-firing instability. On platforms like LinkedIn and X (formerly Twitter), professionals have questioned why India does not enforce shorter notice periods, fair termination compensation and stronger employee rights similar to countries like Ireland.
"If employees need to give 2–3 months' notice before leaving, why can employers terminate them without similar notice?" – sentiment widely shared online
Many also believe internal assessments should only be used for skill development — not as hidden layoff filters.
What does this mean for the future of the Indian IT workforce?
If unions succeed, major changes could follow. Potential outcomes include:
- Mandatory transparency for internal evaluations
- Clear protections against forced resignations
- Shorter and fairer notice periods
- Defined severance structures across IT companies
For now, all eyes are on the November hearing in Pune. The outcome could influence workforce policies across the Indian IT industry, not just at TCS.
FAQs
Is TCS legally allowed to terminate employees after internal exams?
Terminations due to performance exams are not illegal if they follow fair evaluation policies. The dispute is whether the exams are intentionally being used as layoff tools.
Are all TCS employees required to take these exams?
Internal competency exams are common in many organisations, but reports say specific teams and senior groups received targeted exam notifications, raising suspicion.
Will the government force TCS to stop the layoffs?
The government usually does not interfere with business restructuring. However, if laws were violated, penalties or corrective orders are possible.
References
- HR Katha — Article on TCS scrutiny over layoffs and assessments
- Times of India — Coverage on Labour Commissioner’s summons to TCS
- Public statements from NITES and FITE on employee grievances and transparency
