The Forum for Information Technology Employees (FITE) has demanded the formation of a Special Investigation Team (SIT) to probe alleged unfair practices in Tata Consultancy Services (TCS) layoffs this year, spotlighting a stark contrast between the IT giant's Rs. 45,000 crore dividend distribution to shareholders and the modest compensation offered to thousands of terminated staff.
TCS and its massive dividend payout
In a pointed post on X, FITE Maharashtra highlighted how TCS disbursed Rs. 45,000 crore in dividends in 2025 alone, while reportedly paying just Rs. 1,200 crore in severance to laid-off employees – with many others allegedly coerced into resigning without any payout. The post tags key officials including the Maharashtra Chief Minister's Office, Prime Minister's Office, Labour Ministry, Cabinet Secretariat, and Nasscom, questioning when an special investigation team (SIT) will be formed against what it terms 'TCS layoffs'.
TCS has let go of 12,000 employees globally amid restructuring driven by artificial intelligence (AI) adoption and market pressures. In Pune alone, Maharashtra's Labour Minister Aakash Fundkar confirmed 376 terminations over the past two quarters, primarily affecting middle and senior managers. However, FITE disputes this figure, claiming many more workers in the region were effectively retrenched through 'silent' exits, including forced resignations to evade legal obligations under labour laws.
TCS employees treated unfairly: Severance gaps and coerced exits
Severance packages at TCS vary by tenure, offering up to two years' salary for employees with over 15 years of service, 1.5 years for those with 10-15 years, and a minimum of six months' pay. Yet FITE alleges that many affected staff received far less – or nothing at all – due to pressure tactics that framed departures as voluntary resignations.
One commenter noted that Tata Trusts, holding approximately 60 percent of TCS shares, effectively channels much of the dividend back into the group's ecosystem for investments or philanthropy, questioning why employee welfare takes a backseat. Another quipped, "Moral: Don't work for TCS, buy TCS shares and let TCS work for you," underscoring the growing cynicism among the tech workforce.
FITE's call for an SIT aims to investigate these practices, including potential non-compliance with notice periods and compensation norms under the Industrial Disputes Act. The group has urged unity among IT employees, warning that fragmented voices allow such issues to persist unchecked.
Talent Drain Threatens India's AI Ambitions
The TCS episode underscores a deepening crisis in India's IT sector, where talent retention is eroding amid layoffs, stagnant wages, and job insecurity. As professionals flock abroad for better pay and stability, experts warn that unchecked brain drain could hobble the nation's goal of emerging as a global AI powerhouse. With firms like TCS pivotal to upskilling for AI, policymakers face mounting pressure to enforce fair labour practices and invest in domestic R&D to stem the exodus and build a sustainable tech ecosystem.
