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TCS Compels Mass Resignations to Kick Off AI-Driven Workforce Overhaul

The labour ministry has summoned TCS over its bench policy after employees reported forced resignation tactics.

Overview

  • TCS has executed the first tranche of roughly 12,200 mid- and senior-level job cuts by enforcing a 35-day bench limit and offering three months’ pay to those who resign.
  • The IT giant has raised salaries for about 80% of its junior to mid-level workforce and launched reskilling programs for retained employees as part of its shift toward AI-driven services.
  • Labour authorities have opened an investigation into TCS’s bench and termination practices following employee allegations of coercive resignation tactics.
  • Experts warn that TCS’s move signals the start of a sector-wide transition that could put up to 400,000–500,000 outsourcing jobs at risk over the next two to three years.
  • The company maintains that the cuts address skill mismatches rather than direct automation gains and is investing in new technologies with a redefined workforce model for future readiness.