TCS Layoffs: Karnataka Govt Seeks Explanation

Bengaluru, Jul 31 (PTI) Karnataka Labour Minister Santosh Lad on Thursday said that his department has asked Tata Consultancy Services (TCS) to explain the reason behind large-scale layoffs.

"Yesterday we got information that the TCS has laid off 12,000 employees. Our department has called TCS officials just to have consultation to know the reason," the minister told reporters here.

He said Sunrise Industries have been exempted from labour laws but there are conditions attached. "We have kept the sunrise companies outside the ambit of labour laws and for the past five years we have been giving them exemption year after year but yet there are conditions attached," Lad said.

"If they want to layoff somebody, they have to give us information. Accordingly, we are talking to them," he added.

TCS had indicated that it is set to lay off about 2 per cent, or 12,261 employees, of its global workforce this year, with the majority of those impacted belonging to middle and senior grades.

As of June 30, 2025, TCS's workforce stood at 6,13,069. It increased its workforce by 5,000 employees in the recently concluded April-June quarter. The move is part of the company's broader strategy to become a "future-ready organisation", focusing on investments in technology, AI deployment, market expansion, and workforce realignment, TCS said in a statement.

The Karnataka State IT/ITeS Employees Union (KITU) had taken a strong objection over the mass retrenchment and filed a complaint against TCS with the Additional Labour Commissioner G Manjunath.

In a statement, the union said it has demanded legal action against the management for violations of the provisions of the Industrial Disputes Act, 1947, as well as the conditions imposed by the Government of Karnataka concerning the reporting of service particulars.

Minister Lad said another reason behind calling TCS and other industries was to convey to them that the government is not accepting their request for increasing working hours by nine to 10 hours a day, Lad said.

He said if the employees are ready to work then we will consider their request as per the guidelines and give our permission. "This is subject to the employees' wishes. Those employees who reject the permission will not be forced to do it,” he explained.

The Minister also said in his opinion, it is difficult to implement increasing working hours because at least four hours are needed to travel to the workplace.

While one has to work for eight hours and given the strenuous traffic scenario in Bengaluru one ends up spending at least three to four hours on travelling everyday.

"As Minister also when I see this proposal of increasing the working hours, I feel that it is not scientific. Increasing working hours can happen for a week or 10 days but not throughout the year in view of Bengaluru traffic,” Lad explained.

He also said that there was nothing wrong with the claim by those representing industry that increasing working hours will benefit employees and industry.

However, those employees who agree to increase their working hours have to give in writing but we cannot implement it across the board, the Minister noted.