The Karnataka Labour Department has called for a conciliation meeting with Tata Consultancy Services (TCS) on August 6 to discuss recent layoffs, following an industrial dispute filed by the Karnataka State IT/ITeS Employees Union (KITU).
The development was confirmed to AIM by additional labour commissioner G Manjunath.
According to a report by Moneycontrol, TCS, quoting the company CEO K Krithivasan, said it planned to reduce its workforce by 2% by 2026. This would impact 12,000 jobs primarily at the middle and senior levels.
“It has not been an easy decision and one of the toughest decisions I have had to take as CEO,” Krithivasan said, while adding that AI is not the complete reason for the layoff.
The company also mentioned that it is undergoing a significant overhaul, which includes strategic initiatives in new markets and the deployment of AI at scale for its clients.
Following this, on July 30, KITU filed an industrial dispute with the labour department, accusing the IT giant of violating provisions of the Industrial Disputes Act, 1947.
The union said they have received several complaints from TCS employees stating that the management is allegedly forcing them to resign.
“According to the Industrial Disputes Act, companies employing more than 100 workers are required to obtain prior approval from the government before carrying out any layoffs or retrenchments,” a KITU release said.
“Such retrenchments are permitted only for specific reasons and under conditions clearly defined in the Act. This well-established and consistently upheld labour jurisprudence has been violated by the TCS management, which has resorted to the criminal practice of forcing employees to resign,” it alleged.
When AIM asked Manjunath whether TCS violated the Act, the official declined to comment, citing the ongoing nature of the case.
TCS, when contacted over email for a statement, said strategic initiatives including investing in new-tech areas, entering new markets, deploying AI at scale for clients and creating next-gen infrastructure, will impact about 2% of its global workforce, primarily in the middle and the senior grades, over the course of the year.
“This transition is being planned with due care to ensure there is no impact on service delivery to our clients,” the company said in a statement. “We thank them for their service and we will be making all efforts to provide appropriate benefits, outplacement, counselling, and support as they transition to new opportunities.”
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