Tata Consultancy Services (TCS) has come under fire after internally announcing plans to let go of over 12,000 employees — roughly 2% of its global workforce. While the company frames the move as part of an automation-driven transition, employees and unions allege that many exits are being forced, particularly targeting mid- and senior-level professionals.

“Bench Policy” Sparks Fear

The controversy intensified after TCS introduced a new “Bench Policy,” limiting the bench period — when staff await new project assignments — to just 35 days annually. Employees say this policy puts the burden of finding projects entirely on them, reducing the buffer that once protected jobs. Even those on active projects are reportedly being reclassified as “non-critical” and pushed to resign.

Allegations of Coercion

Multiple employees have claimed that they were pressured into resigning under threat of termination without benefits. Accounts include being called into HR meetings, denied the chance to leave the room, and told to switch off phones. Some accepted three months’ salary as an exit incentive due to financial constraints, while others described the process as “intimidating” and “humiliating.”

Union Action and Legal Dispute

The Karnataka State IT/ITeS Employees Union (KITU) has filed an industrial dispute against TCS, accusing the company of violating the Industrial Disputes Act, 1947. They argue that forcing resignations bypasses the legal requirement for government approval before mass layoffs. The first conciliation meeting on August 6 remained unresolved, with the next scheduled for September 8.

Automation vs. Job Security Debate

The IT & ITES Democratic Employees Association (IIDEA) condemned TCS’s justification of the layoffs as part of “reskilling and redeployment.” They argue that automation should enhance work-life balance, not be used to slash jobs. Critics also highlight TCS’s new requirement of 225 billable days annually, warning it will worsen job insecurity.

Onboarding Delays Add to Uncertainty

Hundreds of professionals remain stranded after TCS issued offer letters but delayed their joining dates, leaving many in financial limbo. Unions and employees alike are urging the company to offer genuine reskilling opportunities, transparent policies, and job security instead of cost-cutting measures that erode trust.