When Tata Consultancy Services (TCS) announced a restructuring that would affect roughly 12,000 staff in July 2025, the news quickly spiraled into a social‑media firestorm fueled by a claim that as many as 80,000 employees had been forced out. The controversy pits a single post by Soham Sarkar on X, dated September 28, 2025, against the company’s own figures, while a local union in Pune has lodged a formal complaint with Maharashtra Chief Minister Devendra Fadnavis. Why it matters: the outcome could reshape hiring practices across India’s IT services sector, especially as firms race to embed AI into every line of business.
Background: TCS’s Workforce Evolution
At the end of fiscal year 2025, TCS’s global headcount stood at 613,069 employees, according to the company’s annual report released on June 30, 2025. After a modest rebound from FY24—where numbers had dipped to 607,000—the firm seemed to be on a recovery trajectory when the decision to trim staff was made.
This isn’t TCS’s first round of cuts. In 2012, the company let go of roughly 2,500 people after a series of under‑performance evaluations. The 2025 move is framed as a response to a new reality: a surge in client demand for AI‑driven solutions and a corresponding gap in employee skillsets.
The Official Layoff Announcement
On July 15, 2025, TCS issued a press release stating that approximately 12,000 workers—about 2 % of its global workforce—would be let go over the next quarter. The company described the cuts as a “strategic realignment” aimed at upskilling staff for AI‑centric projects.
Employees targeted by the plan are categorized by tenure:
- Less than 3 years: three months’ notice pay only.
- 3–9 years: six months to one year’s salary as severance.
- 10–15 years: roughly 1.5 years’ salary.
- Over 15 years: up to two years’ salary, plus early‑retirement options under the ‘TCS Cares’ programme.
The Social‑Media Surge: 80,000 Claims
Fast forward to September 28, 2025. Soham Sarkar posted on X: “Met a college friend who works at TCS, and according to him, around 80,000 (yes, 80k; it’s not a typo) employees have been let go so far – some with 18 months' salary, some with 3 months, and some with zero severance package.” The tweet quickly garnered thousands of retweets and sparked a cascade of similar anecdotes.
What makes the claim sticky is its specificity: a friend of 15 years at the firm, a precise figure, and a vivid description of divergent severance packages. Critics, however, point out that no corroborating data has emerged from TCS’s HR department, and the company’s official numbers have remained unchanged.
Local Union Response: NITES Steps In
Amid the noise, the Nascent Information Technology Employees Senate (NITES)—a collective representing IT workers in Pune—issued a statement on October 2, 2025. The union alleged that at least 2,500 employees at the company’s Pune hub were coerced into resigning after being placed on the bench for more than eight months.
In a letter to Chief Minister Devendra Fadnavis, NITES demanded a probe into alleged unfair practices, citing “unexplained discrepancies between the official layoff figure and the number of employees exiting the Pune campus over the past two months.” The union also called for a review of the bench policy, arguing it creates a de‑facto termination pathway.
Speaking to reporters, NITES spokesperson Anjali Mehta said, “Our members are not just numbers. Many have families, mortgages, and are suddenly told they have three months’ notice without a clear path forward. The 80,000 figure may be inflated, but the human impact is real.”
Industry Analysts Weigh In
Renowned technology analyst Priya Kaur of IDC India remarked, “The AI talent shortage is a genuine pressure point for Indian IT firms. TCS is likely trimming roles that are not future‑proof. Whether it’s 12,000 or 80,000, the broader trend is a shift toward higher‑skill, higher‑pay positions.”
Conversely, economist Rohan Mehta from the Indian Institute of Management Bangalore cautioned, “Inflated rumors can cause panic, leading to attrition spikes that hurt productivity. Companies need transparent communication, especially when employing over half a million staff.”
What’s at Stake for the Indian IT Sector?
India’s IT services export revenues reached $226 billion in FY24, with TCS contributing roughly $27 billion. Any major workforce disruption reverberates across the ecosystem: recruitment firms, training providers, and even regional economies that depend on payroll spending.
Moreover, the AI transformation agenda—pushed by global clients demanding automation—means that firms that fail to reskill risk becoming irrelevant. TCS’s move, contentious as it is, could be a bellwether for rivals like Infosys and Wipro, which are also revisiting bench policies.
Looking Ahead: October 9 Q2 Results
The next litmus test arrives on October 9, 2025, when TCS will release its Q2 earnings and likely clarify the exact scale of its workforce changes. Investors will be watching not just the profit margins but also the language used to describe employee transitions.
Will the company double‑down on AI upskilling and present the layoff numbers as a strategic pivot? Or will it concede to union pressure and adjust its bench policy? The answer will shape talent strategies across the sector for years to come.
Key Facts
- Official layoff figure: ~12,000 employees (2 % of 613,069 total staff).
- Social‑media claim: 80,000 employees let go, posted by Soham Sarkar on Sep 28, 2025.
- Union allegation: 2,500 Pune workers forced to resign; complaint filed with CM Devendra Fadnavis.
- Bench policy: 35‑day limit (June 12–July 17, 2025); >8‑month unallocated staff face reduced severance.
- Future milestone: Q2 earnings and clarification scheduled for Oct 9, 2025.
Frequently Asked Questions
How reliable is the 80,000 layoff figure?
The 80,000 number originates from a single X post by Soham Sarkar and has not been corroborated by any official source. Industry analysts suggest the actual figure is likely closer to the company‑announced 12,000, though exact numbers may be higher if bench‑related exits are counted separately.
What impact could the layoffs have on Pune’s local economy?
Pune hosts one of TCS’s largest campuses, employing over 30,000 staff. Even a 2,500‑person reduction could shave roughly 5 % off local consumer spending, affect housing demand, and increase competition for remaining tech talent.
Why is AI skill relevance driving these cuts?
Clients are rapidly adopting AI‑enabled platforms, demanding engineers who can build, integrate, and maintain these solutions. Employees whose expertise lies in legacy technologies are seen as less valuable, prompting TCS to prioritize upskilling and, where that isn’t feasible, to offer severance.
What does the union NITES hope to achieve?
NITES seeks a state‑level investigation into alleged forced resignations and wants the bench policy revised to protect workers from arbitrary terminations. The union also aims for greater transparency around the actual numbers of affected employees.
When will we know the final layoff numbers?
TCS is slated to release its Q2 earnings on October 9, 2025. The results are expected to include a detailed breakdown of workforce changes, which should settle the dispute over whether the cuts number in the thousands or tens of thousands.
