
When Tata Consultancy Services (TCS) internally announced its plans to let go of over 12,000 employees, which is roughly 2% of its global workforce, the reactions from the company’s employees were swift and filled with anxiety. For many mid-level professionals, particularly those in Bengaluru, the news did not come as a surprise, as they say that the signs had been there for weeks. But now, that dread has turned into panic.
A few employees have now alleged that they are being coerced to resign, with threats of blacklisting and withholding of payments if they resist.
“They offered three months' pay as an incentive to resign. But if someone refuses, they’re told they’ll be terminated without compensation, and won’t receive a relieving letter,” a mid-management level TCS employee in Bengaluru told TNM on condition of anonymity.
“It’s a threat strategy. People are scared into quitting,” said the employee.
It doesn't end here, two employees who were asked to resign told TNM that they were asked to switch off their phones and keep it on the table before they were called in to a meeting with the HR. “During this meeting, they will try their best to convince us to resign. We are not allowed to leave the room or speak to anyone without agreeing to resign,” an employee who was asked to resign said.
The employee told TNM that she would not have resigned had it not been for her financial condition. “If we are terminated, we can file a dispute case with the labour department. That is what I wanted to do. But I come from a financially poor background. My colleagues advised that if I resign, I will go with three months salary and other benefits, which is the need of the hour for me. There are many like me,” said the employee.
At the heart of the current crisis is TCS’s recently introduced "Bench Policy", which limits an employee’s duration on the bench, which is said to be the period during which staff are not assigned to any active client project, to just 35 days annually.
Previously, the bench was seen as a buffer zone for employees awaiting new projects. Now, with the onus of finding suitable assignments falling squarely on the workers, that breathing room has shrunk dangerously.
“Until now, people thought only those on the bench were at risk. But now even those working on active projects have started receiving queries about their roles being classified as ‘non-critical,” the employee added.
The employee, who works at the TCS Bengaluru office, alleged more than 300 people have been made to resign from that campus itself over the past week as around 50 people are called in daily to tender their resignations.
Managers, according to insiders, are being asked to identify a fixed number of "non-essential" personnel across projects, a move that employees say is the beginning to forced exits.
Following the internal announcement on July 27, the Karnataka State IT/ITeS Employees Union (KITU) stepped in. On July 29, union representatives met with the Additional Labour Commissioner, filing an official industrial dispute against TCS. They accused the company of illegal mass retrenchment and of violating both the Industrial Disputes Act, 1947, and employment conditions mandated by the Karnataka government.
“This is not a layoff in compliance with the law. TCS is forcing resignations, bypassing the mandatory government approval needed under the Act for companies with over 100 employees. This is a deliberate and unlawful tactic to avoid scrutiny,” KITU said in its statement.
The union has demanded criminal proceedings against TCS officials who they say are complicit in forcing employees to resign under duress. In recent weeks, KITU claims to have received over 25 calls from distressed employees who say they’re being forced to quit.
Following this, a conciliation meeting between the TCS management and representatives of KITU was held on Wednesday, August 6, at the Labour Office in Bengaluru.
Representing the company were Boban Varghese Thomas, General Manager – HR, and Mahesh GK, Assistant Manager. KITU was represented by General Secretary Suhas Adiga, President VJK Nair and Secretary Sooraj Nidiyanga. The session was presided over by Additional Labour Commissioner G Manjunath, acting as the conciliation officer. It was agreed that the next round of discussions would be held on September 8, as the matter remains unresolved.
The IT & ITES Democratic Employees Association (IIDEA) also issued a strong condemnation of TCS’s actions, particularly targeting the company’s narrative that the layoffs are part of a “reskilling and redeployment” effort driven by automation and AI.
“Automation should enhance work-life balance, not be weaponised to slash jobs,” an IIDEA statement said. “What we are witnessing is not transformation but cost-cutting masquerading as future-readiness,” it said.
IIDEA accused TCS of unfairly targeting experienced, mid and senior-level professionals with higher wage brackets. They also flagged the company’s "exploitative" new deployment policy, which now requires employees to clock 225 billable days annually - a demand they say will worsen job insecurity and erode work-life balance.
Adding to the chaos are hundreds of professionals left in limbo after TCS issued offer letters but delayed onboarding. Many quit previous jobs after being promised July 2025 joining dates, but have since received no further communication.
“These workers have been thrown into financial and professional uncertainty. It’s irresponsible and cruel,” IIDEA statement said.
While TCS has maintained that the cuts are part of a larger transition toward automation, workers and unions argue that the rationale is being used to sideline seasoned professionals in favour of cheaper labour.
“Employees with a decade or more of service are being asked to leave without a plan, without severance, and without dignity. If TCS truly wants to transition to a new tech era, why not offer genuine reskilling programs and job security?” asked a union representative.
“We helped build this company. Some of us have worked here for more than 15 to 20 years. And now we are just being discarded. ” another mid-level employee told TNM.
TNM has sent a list of questions to TCS. This copy will be updated if we get replies.