UNITE Stages Protest in Chennai Against TCS Layoffs Targeting Senior Staff

The Union of IT & ITES Employees (UNITE) staged a major protest in Chennai on Tuesday against Tata Consultancy Services’ (TCS) reported move to lay off 12,000 mid and senior-level employees.

Union members alleged that the company is replacing experienced staff with fresh recruits hired at 80%–85% lower pay.

“TCS is in the process of laying off staff at senior and managerial levels. At the end of this, nearly 30,000 to 40,000 staff may lose their jobs,” said Janani of UNITE.

The protesting employees demanded that the firm focus on reskilling and upskilling instead of “discarding” long-serving staff. A press release from UNITE stated, “With a revenue of 2.55 lakh crore and an operating profit margin of 24.3% and a 45,588 crore dividend, 12,000 jobs are slashed.”

The release also alleged that top executives enjoy “obscene” pay hikes while ordinary employees are denied such benefits. It further accused the government of remaining silent and continuing to award contracts to TCS despite the layoffs.

Widespread Criticism Over Job Cuts

Following similar reports at Oracle, TCS has now come under the spotlight, triggering widespread chaos and protests.

UNITE claims that the layoffs may impact as many as 30,000 to 40,000 jobs, though the company has firmly denied these numbers as “incorrect and misleading.”

TCS clarified that only 2% of its workforce has been affected. Still, protests in Chennai and growing discussions online have intensified concerns over job security in India’s IT sector.

Demonstrations in Chennai

After news of the layoffs surfaced, UNITE launched demonstrations in Chennai this week, claiming that senior and mid-level employees are being dismissed without prior notice.

Protesters carried placards and banners with slogans labelling management as “Chief of Corporate Greed” and “Chief of Cruelty.”

One of the prominent slogans read: “Secret to stop layoffs: Unionise.”

The union reiterated its allegation that experienced employees are being pushed out and replaced with freshers hired at drastically reduced salaries.

TCS Responds to Allegations

In response, TCS strongly denied the large-scale layoff claims. In a statement to Financial Express, the company said: “These speculations are incorrect and misleading. As communicated earlier, the impact is limited to 2 per cent of our workforce.”

TCS further insisted that restructuring affects only a small fraction of employees and highlighted its ongoing emphasis on reskilling and upskilling programs.

Union Accuses TCS of Profit-Driven Cuts

UNITE has argued that the layoffs are unnecessary and purely profit-driven, pointing to the company’s strong financial results.

The union highlighted the firm’s Rs 2.55 lakh crore revenue, 24.3% operating profit margin, and Rs 45,588 crore dividend payout to shareholders.

“Workers are not numbers on a balance sheet — we demand justice!” the union posted on social media platform X, while accusing TCS of disguising layoffs as restructuring.

The protest quickly gained traction online, with hashtags such as #TCSLayoffs and #JobSecurity trending across X, LinkedIn, and Facebook. Many users expressed solidarity with affected employees and criticized large IT firms for prioritizing profits over worker security.

Layoffs Spark Nationwide Debate

The controversy has amplified fears about shrinking opportunities for senior IT professionals in India, where job security has become a major concern.

While TCS maintains that layoffs are limited, the union’s claims and growing public backlash reflect the divide between corporate strategies and employee welfare.

UNITE has continued to demand that TCS reskill and reassign employees instead of replacing them with cheaper recruits. The organization also condemned the government for failing to act against mass retrenchments.

Salary Hike Announcement Amid Layoff Allegations

Adding to the debate, TCS recently announced salary hikes effective September 1, 2025. According to reports, nearly 80% of employees — around 4 out of 5 — are eligible for the increment.

The hike applies to staff with up to 11 years of experience in the C3A band. Employees in higher bands such as C3B, C4, and C5 are not included in this round.

Reports also suggest that the hike will benefit more than 4 lakh employees, with those earning between ₹15 lakh and ₹35 lakh seeing an increase in compensation.

However, UNITE argued that while junior employees are being offered increments, senior staff are being systematically removed, thereby reinforcing the union’s claim that layoffs are motivated by profit margins.

The Growing Rift in IT Employment

The protests in Chennai underline the rising tensions between IT firms and employees in India. For workers, the TCS layoffs are not just about numbers but about livelihoods and stability in a sector long considered secure.

Whether the restructuring is truly limited or larger than reported, the situation has already fueled a broader debate on job security, corporate responsibility, and the future of employment in the Indian IT industry.