IT Union Files Dispute Against TCS Over Layoffs, Karnataka May Also Intervene

The Karnataka State IT/ITeS Employees Union (KITU) has filed an industrial dispute against Tata Consultancy Services (TCS) over its proposed layoffs, urging the Labour Department to act against the management for alleged violations of the Industrial Disputes Act, 1947, and conditions imposed by the Government of Karnataka on reporting service particulars.

Earlier this week, TCS announced that it will reduce its global workforce by 2 per cent in its 2026 financial year, which would lead to about 12,000 people losing their jobs.

KITU representatives met Additional Labour Commissioner G Manjunath on Wednesday and submitted a complaint citing multiple employee grievances. 

Under the Industrial Disputes Act, companies employing more than 100 workers are required to obtain prior government approval before carrying out any layoffs or retrenchments. Such actions are permitted only for specific reasons and under conditions clearly defined in the Act. KITU claimed that the TCS management had violated these provisions.

The Union demanded criminal proceedings against officials involved in the violations and immediate action from the Labour Department to ensure justice for the affected employees.

Meanwhile, sources in the Labour Department confirmed that a meeting with TCS management is being planned to discuss the proposed layoffs. Though the date is yet to be finalised, the state Labour Minister has directed that the meeting be held as soon as possible.

KITU stressed the urgency of the situation and called for strict enforcement of labour laws in the IT sector, warning that failure to act could set a dangerous precedent for employees' rights in the state.

TCS has said the layoffs are part of its strategy to become a "future-ready organisation", focusing on investments in technology, AI deployment, market expansion, and workforce realignment.

"Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year," the company said in a statement.