TCS Layoffs 2025: Separating Fact from Rumor in the 80,000 Jobs Stir

The recent speculation around TCS layoffs claiming 80,000 job cuts has created panic in India’s IT sector. Here’s a detailed look at the truth, official statements, employee stories, union protests, and the future of tech jobs in India.

Introduction

In late 2025, India’s tech world was jolted by headlines claiming that Tata Consultancy Services (TCS), one of the country’s most trusted IT giants, had let go of 80,000 employees in a sweeping layoff exercise. The sheer size of the number caused panic among employees, job seekers, and even industry watchers. Social media amplified the claim, and stories of forced resignations and severance battles began circulating at lightning speed.

But as with most viral news, the reality is far more nuanced. TCS has denied the 80,000 figure, putting the official number closer to 12,000 employees—around 2% of its global workforce. At the same time, employee unions and individual accounts paint a more complex picture of how the layoffs have unfolded.

This article explores the controversy in depth: the claims, the official stance, what employees and unions are saying, why the numbers don’t add up, and what it all means for the future of IT jobs in India.

The Claims: 80,000 Job Cuts + Severance

The controversy began when a viral post alleged that TCS had retrenched nearly 80,000 employees in India. It further claimed that severance benefits varied drastically—some employees reportedly received packages worth up to 18 months of salary, while others got little or nothing.

Soon after, stories emerged of employees being “forced to resign,” sometimes in short HR meetings, with little time to react. Accounts of abrupt termination and confusion around severance spread widely, fueling the idea that tens of thousands of workers were being impacted.

The figure gained traction because it matched public fears: with AI and automation increasingly shaping the tech industry, the notion that mass layoffs could wipe out careers overnight did not seem impossible.

What TCS Officially Says

TCS quickly moved to address the controversy. The company denied the 80,000 figure outright, calling it “misleading and incorrect.” Instead, executives clarified that the actual cuts would affect about 2% of its global workforce—around 12,000 employees.

With a global headcount of more than 613,000 employees, this reduction, while significant, is far from the mass purge implied by the viral claim. TCS explained that the move was part of a broader workforce restructuring strategy, intended to align talent with shifting client needs in areas such as cloud computing, data engineering, cybersecurity, and AI.

Interestingly, while layoffs made headlines, TCS also announced wage hikes for nearly 80% of its employees, effective from September 2025. This dual move highlights the company’s effort to balance cost optimization with retaining and motivating critical talent.

Employee Stories: Between Resignations and Terminations

Despite the official statement, employee accounts suggest a more unsettling reality. Many workers reported being pressured to resign instead of being formally laid off. For some, the process reportedly involved HR summoning them to meetings and giving little choice but to hand in their resignation letters.

Several mid-level professionals who had spent over a decade with the company described feelings of betrayal. Some claimed they were targeted because their skills no longer matched project requirements. Others alleged that “bench recovery fees”—amounts deducted from gratuity or benefits for time spent unassigned—left them financially worse off.

In fresher circles too, discontent has grown. There are stories of young hires being told their performance was not up to par and being nudged out just months after joining. In many of these cases, the difference between resignation and termination appears deliberately blurred, making it difficult to track the true scale of the exits.

Union Protests and Allegations

Employee unions have been vocal. The Union of IT and ITES Employees (UNITE), along with other worker groups, organized protests in major cities, alleging that TCS’s layoffs amount to “illegal retrenchment.”

Unions contend that the actual count of affected staff may be around 30,000—much higher than the 12,000 acknowledged by the company. They allege that mid-level professionals, particularly those with 10–15 years of experience, are facing the brunt of these cuts.

Unions are urging the government to step in, calling for clearer communication from TCS and stronger safeguards for IT employees, who are frequently left outside the scope of standard labor laws.

TCS, for its part, has stood firm: the company insists that the total layoffs are limited to around 2% of staff and that all speculation beyond that is inaccurate.

Why Such a Big Discrepancy in Numbers?

The gap between the official 12,000 layoffs and the viral 80,000 claim can be explained by several overlapping factors:

Forced Resignations – Employees asked to resign voluntarily may not appear in official “layoff” numbers. This creates the perception of underreporting.
Benched Employees – Staff left without projects for extended periods may eventually be nudged out, blurring the line between attrition and layoff.
Contract Workers & Subsidiaries – If contractors or subsidiary employees are included in speculation, the numbers can look inflated.
Social Media Virality – Large numbers spread faster online, especially when they fit into a narrative of fear.
Severance Confusion – Disputes around packages, deductions, and entitlements may make employees feel they were unfairly treated, amplifying claims of larger job cuts.

The truth likely lies somewhere between: official records may reflect 12,000 cuts, but informal resignations, bench exits, and quiet attrition could push the real impact higher, though nowhere near 80,000.

The Bigger Picture: Why Layoffs Are Happening

The layoffs at TCS are not an isolated event but part of a larger transformation happening across India’s IT sector.

1. AI and Automation

AI tools are automating many tasks that once required large human teams—testing, bug fixing, infrastructure management, and even parts of project management. Analysts warn that over the next 2–3 years, as many as 400,000–500,000 IT jobs in India could be disrupted.

2. Skill Mismatch

The demand is shifting from bulk talent to specialized expertise in areas like AI, cybersecurity, cloud, and data engineering. Employees without these skills are more vulnerable.

3. Global Economic Pressure

Global clients are cautious about spending on large discretionary projects. IT firms face pressure to maintain margins, leading to cost optimization, including workforce adjustments.

4. Changing Business Models

The traditional pyramid model of Indian IT—where large numbers of junior staff support a few senior managers—is being rebalanced. Companies are focusing on leaner teams with niche skills rather than massive headcounts.

Human Cost: How Employees Are Affected

Financial Stress

Some employees claim they received severance packages that did not cover their full tenure, while others faced deductions for time spent on the bench. This financial strain has added to the emotional shock.

Emotional Impact

Beyond the monetary hit, many employees described feelings of humiliation, betrayal, and anxiety about their future. For people who had spent over a decade at TCS, being suddenly asked to resign was devastating.

Career Disruption

Laid-off workers now face the challenge of reskilling for an industry increasingly dominated by AI and specialized technologies. Without upskilling, many risk being left behind in a more competitive job market.

Implications for India’s IT Industry

Hiring Will Slow Down – Bulk hiring of freshers may reduce, with companies focusing on smaller batches of highly skilled recruits.
Pressure on Mid-Level Employees – Professionals with outdated skills may find themselves at risk unless they retrain.
More Union Activity – As job insecurity rises, IT unions may gain more traction, pushing for stronger worker protections.
Policy Reforms – The government may need to revisit labor laws for IT workers, especially regarding severance, notice periods, and dispute resolution.

Final Verdict: What’s the Truth?

The 80,000 job cut claim appears exaggerated.
TCS’s official figure of around 12,000 layoffs (about 2% of staff) is consistent with restructuring trends across the industry.
However, employee stories and union protests suggest that the actual impact could be higher if forced resignations and bench exits are considered.
Regardless of the exact number, the level of anxiety and fear among employees is undeniable—a clear sign that the IT industry is undergoing a structural shift.

Key Lessons

Verify Numbers Before Panicking – Viral claims can exaggerate real issues. Always check multiple credible sources.
Reskilling is Crucial – The IT job market is evolving rapidly. Professionals must keep upgrading their skills to stay employable.
Companies Need Better Communication – Layoffs handled poorly can damage morale and reputation. Transparency and fairness are essential.
Policy Support is Needed – Stronger labor protections and retraining programs are necessary as automation reshapes jobs.
The Age of Stability is Over – Long careers at one IT firm are no longer guaranteed. Flexibility and continuous learning are the new norms.

Author’s Note

As an observer of India’s IT sector, I wrote this article to separate facts from speculation and highlight the human side of layoffs. While TCS insists the scale of cuts is far smaller than viral claims, the stories of employees caught in the middle show how disruptive and painful workforce restructuring can be.

If you are an IT professional, this is a wake-up call: invest in learning, stay flexible, and prepare for change. For companies, it is a reminder that employees are not just headcounts—they are human beings who deserve dignity, clarity, and support during transitions.

The Financial And Tech Literacy