Key Takeaways
- TCS reported a net reduction of 19,755 employees in Q2 FY26
- IT unions claim 38,255 employees were actually “let go” in the quarter
- Unions allege TCS violated labor laws and demand government intervention
Three major IT unions have jointly demanded government action against Tata Consultancy Services (TCS), accusing the IT giant of illegal mass terminations and labor law violations following its Q2 FY26 results.
The Karnataka State IT/ITES Employees Union (KITU), Association of IT Employees (AITE)-Kerala, and Union of IT and ITES Employees (UNITE)-Tamil Nadu issued a statement on Sunday urging state and central governments to “take immediate responsibility for their failure to enforce labour laws and regulate IT companies.”
Union Allegations and Demands
The unions stated: “We urge the state and central governments to take immediate responsibility for their failure to enforce labour laws and regulate IT companies, allowing corporations like TCS to exploit and mistreat employees with impunity. The lack of effective oversight and enforcement has emboldened companies to disregard workers’ rights.”
They emphasized that governments must “take concrete actions to protect the rights and livelihoods of workers by regulating these companies immediately.”
Conflicting Employment Figures
While TCS reported a net reduction of 19,755 employees during Q2 FY26 (bringing total headcount to 593,314 from 613,069 in Q1), the unions presented different calculations.
Their statement claimed the company had “let go” 38,255 employees in Q2, stating: “When combined with the number of new hires made during the same period, it reveals that a staggering 38,255 employees were let go in this single quarter.”
Dispute Over Termination Claims
The conflict intensified when newly-appointed CHRO Sudeep Kunnumal stated that only 6,000 employee departures were due to “involuntary attrition.”
Unions strongly disputed this claim, alleging that “the company employed cruel and illegal methods to force these employees out.”
Legal Violation Allegations
The unions argued that TCS’s admission of retrenching 6,000 employees constitutes a violation of the Industrial Disputes Act, which requires proper procedure and government approval for mass terminations.
Their statement concluded: “By openly accepting that it has retrenched 6,000 employees, TCS has admitted to a violation of the Industrial Disputes Act. The government must immediately intervene to uphold the law of the land.”
