TCS Layoffs 2025: What You Need to Know if You're Affected

On July 27, 2025, TCS publicly announced that it would release its global workforce.

The company says this is part of its long-term plan to become a “future-ready organization.”

What that really means:

• Investing in AI and automation at scale

• Entering new global markets

• Creating next-gen infrastructure

• Realigning its workforce through reskilling and restructuring

But here’s what they didn’t mention in the press release:

• Allegations of forced resignations

• A new 35-hour bench policy

• A pending conciliation meeting with the Karnataka Labour Department on August 6

The Real Trigger: 35-Day Bench Policy

What’s fueling the unrest is a new policy TCS quietly introduced.

Employees can now remain unassigned (on “bench”) for only 35 business days per year.

This means:

• If you’re not assigned to a project within that short window, you become vulnerable to performance flags, pressure to resign, or sudden release.

• Employees must log 225 billable days per year to meet minimum expectations.

• During the bench period, employees are expected to attend office and participate in daily upskilling tasks, even if they have no client or billable work.

Reddit threads and internal chatter call this out for what it is: aggressive and one-sided.

The entire burden of finding a project now sits on the employee, with little to no help from delivery or resourcing.

Forced Resignations: What Employees Are Reporting

As per The Economic Times, these job cuts are expected to save the company $300-400 million (₹2,400–3,600 crore) annually. That’s a huge cost saving. But at whose cost?

TCS called it “workforce realignment.” But Reddit threads, Glassdoor reviews, and union helpline calls tell a very different story.

Common reports include:

• Employees being nudged verbally to resign without formal written communication

• Threats of poor performance reviews or blocked internal movement if they don’t exit

• Sudden revocation of email access and ID deactivation after verbal “discussions”

• Internal HR channels asking employees to submit resignation letters themselves, avoiding formal layoff documentation

One employee wrote:

“12,000 is the official number. But if you count the forced exits, it’s much higher. Managers are calling people into rooms and telling them to resign to keep their profile clean.”

Another mentioned:

"Resign, and go where? They are using tactics to force you to take whatever role is available according to your broader role irrespective of your skill set or aspirations."

Why This Matters: Resignation vs Layoff

If you resign under pressure:

• You lose severance eligibility

• You forfeit notice period compensation (in many cases)

• You give up future legal recourse

• Your exit appears voluntary, so there’s no formal record of termination

Compare that with a layoff:

• Documented exit terms

• Full or partial severance (depending on tenure)

• Eligibility for legal protection under Indian labor law

In short, a resignation may look cleaner. But it puts the risk on you. If you're being nudged to resign instead of getting a formal letter, chances are they're dodging compliance and protecting themselves, not you.

Legal Pushback: What the Law Says

TCS is now facing formal scrutiny. The Karnataka State IT/ITeS Employees Union (KITU) has filed an industrial dispute under the Industrial Disputes Act, 1947.

What you should know:

• If a company has more than 100 employees, it can’t do mass layoffs without government approval.

• Retrenchment is only allowed in cases like role redundancy, project shutdown, or real financial trouble.

• If you’re pressured to resign without clarity and choice, it doesn’t count as voluntary.

A conciliation meeting between TCS, KITU, and the Karnataka Labour Department is set for August 6, 2025. What comes out of it could shape how IT layoffs are handled across India going forward.

Employee Sentiment: From Job Security to Disillusionment

For years, TCS has had the reputation of being one of the more stable IT firms. A place where jobs were considered long-term, even if the growth was slower than competitors.

That reputation is now under question.

LinkedIn, Reddit, Glassdoor consistently show anxiety and bitterness. It's full of stories that cut through the PR.

People on Glassdoor talk about being mentally pushed to resign, attendance records being manipulated, and careers slowly going nowhere.

“They mentally tortured me so that I resign voluntarily. Then they fired me citing poor attendance.”

On Reddit (r/IndiaTech), users are blunt:

“There was never a good time to be a TCS employee. They’re always among the first to lay off when markets wobble.”

“You're just a number. Resourcing won’t help you. You're on your own.”

Other threads highlight harsh reality:

“Bench is a waiting room for exit. If you’re on the bench too long, you’ll be terminated.”

Another blunt post:

“Access revoked within hours. HR ignored every email.”

From Reddit:

“I never thought TCS would do this. It used to be like a government job. Now, I’m on the bench and scared to even ask what’s next.”

What’s worse is many didn’t even get time to prep, collect proof, or line up their next move.

What Should Affected Employees Do Right Now?

If you’re currently on bench, under performance scrutiny, or have been asked to resign, here are the steps to follow immediately:

1. Do not resign without documentation

Make sure there is a formal letter stating the reason for your exit, severance details, and last working day. Do not act on verbal instructions.

2. Ask for written clarity

If you're told your role is no longer required, ask for a written notice. Insist on formal communication.

3. Collect and save everything

Payslips, appointment letter, offer letter, internal emails, resignation letters (if any), and performance records. These may be required for legal or job search purposes.

4. Understand your rights

You may be eligible for:

• Notice pay

• Severance

• Gratuity (if you’ve served over 5 years)

• Outplacement support

Check your employment contract and speak to legal professionals if unsure.

5. Reach out for help

KITU and other unions have opened helplines and are actively supporting employees facing forced exits. Even if you're not in Karnataka, their advice is worth listening to.

Protect Your Exit, Preserve Your Career

If you’re affected, act now. Don’t assume your employer will do what’s best for you.

• Get clarity.

• Push for documentation.

• Know your rights.

The difference between a well-managed exit and a sudden resignation will impact not just your severance, but also how future employers perceive you.

A layoff is not a career end. But a messy exit without proof can block your next opportunity.

Need Help?

As someone who went through a layoff back in 2019, I know how disorienting it can be. I’ve seen people go from steady jobs to hand-to-mouth existence in weeks. That’s why I put together a simple Layoff Exit Checklist.

It includes:

• What to ask HR (and what to get in writing)

• What to avoid saying during calls and 1:1s

• Which documents you must collect

• How to position your exit in future interviews (without sounding defensive)

• How to fill the gap and stay visible on LinkedIn

• Resume and LinkedIn tweaks that actually work post-exit

• How to restart your job search without panic

• And a lot more that people usually miss

Comment “CHECKLIST” below and I’ll send it to you directly.

Take control before someone else writes your story.

(This isn’t a service promotion. Just honest help)

Sources: Reddit (r/IndiaTech, r/Layoffs), Glassdoor, People Matters, The Hindu, The Economic Times, The Times of India, The Indian Express, Reuters, Free Press Journal, Maharashtra Times