TCS Retrenchment

India’s largest IT services provider, Tata Consultancy Services (TCS) has been issuing termination letters to more than 25,000 employees. However, the company says that “workforce optimization is a continuous process which happens throughout the year taking into account employee performance, business needs, and people aspirations. This is nothing out of the ordinary or a special situation for us to comment about.”

From news reports, online comments by IT employees and TCS employees who contacted us we ascertained that TCS is laying off almost one third of its senior employees (who are in their mid 30s) over a few weeks period.

After the 2008 global financial crisis, leading European and US clients started putting pressure on Indian IT companies to reduce project pricing. However, pressure on corporates to sustain quarterly profitability growth persists. To compensate for falling project pricing, Indian IT firms resort to cost cutting. Benefits to employees were curtailed and work load increased significantly.

Now, they are replacing experienced employees with low paid fresh graduates. TCS which is laying off 25,000 experienced employees now has announced that it will hire 55,000 fresh graduates in the coming financial year.

Young graduates are prepared to work for long hours keeping in mind future career prospects. With their hard work they contribute to the growth of IT companies. When the same employees reach middle age, and have family responsibilities their employers throw them out as unwanted baggage.

New Democratic Labout Front strongly condemns this act of TCS and challenges this corporate atrocity legally and organizationally. We are conducting massive propaganda work among IT employees online and on the ground. Many IT professionals working in TCS and other IT companies contacted us over phone, email and in person. They expressed their interest in forming an union.

We are planning to conduct a meeting of IT employees in the second week January. We will keep you updated about the developments.


Suba Thangarasu,
General Secretary,
New Democratic Labour Front,
Tamil Nadu

New Democratic Labour Front

No 110, 2nd Floor, 63 NSK Salai, Kodambakkam Chennai 600 024
Phone : 94441 06479

For further information
Website :
Facebook :
Phone : 90031 98576, 94444 106479
Email :
We also have a facebook page dedicated to this movement

Series NavigationTCS Layoff – NLDF combats >>

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