TCS Fired Employee Count - 12,000 Or 80,000? Layoff Rumours and Severance Disputes Go Viral

Updated: 12:45pm: TCS said in a statement, “These speculations are incorrect and misleading. As communicated earlier, the impact is limited to 2 percent of our workforce."

As Tata Consultancy Services (TCS) grapples with a broader restructuring amid sluggish demand in the IT sector, whispers from within the company suggest the scale of layoffs could be dramatically larger than officially disclosed. A viral post on X by user Soham Sarkar claimed that up to 80,000 employees have been let go since the start of the year, with severance packages varying wildly, from 18 months' salary for some to zero for others. The post, which has garnered over 4,300 likes and 3,49,000 views, attributes the figure to Sarkar's college friend and former hostel roommate, a long-time TCS employee.

"This is a staggering number, and I am sure it will spill over to other IT services firms," Sarkar wrote, highlighting the inconsistency in exit packages that has left many employees in financial limbo. The revelation has ignited a flurry of responses on the platform, with current and former TCS staff sharing anecdotal evidence that paints a picture of widespread anxiety and uneven treatment.

One reply from a user recounted personal connections to the layoffs, "Very true. One of my managers was forced to take VRS after more than 25 years with TCS. My neighbour has been laid off after being in there for 20 years. Ex-manager says they get fluidity lists every week. From various people I have heard that the number is around 40-50k so far."

Another user echoed the severance woes, noting, "I’ve heard similar story from a friend whose wife works at TCS. Not sure about the 80k number but he said people are being let go without severance packages." A third commenter anticipated ripple effects, stating, "Most of IT in India is service based so I suspect more pain ahead."

Not all reactions were affirmative; skepticism abounded, with one user pointing to TCS's status as a listed company, "Since its a listed company, the employee count is publicly declared. Dont think the corporate governance levels of TCS or the authenticity of Indian regulator is that bad." Others dismissed the 80,000 figure as exaggerated, estimating closer to 30,000 based again on internal rumours, though they confirmed aggressive headcount reductions through forced resignations and bench reallocations.

For context, TCS publicly announced in August plans to cut approximately 12,000 roles as part of its workforce optimisation strategy, primarily targeting underperformers and redundant positions amid a shift toward AI-driven operations. The move was framed as necessary to streamline the company, which employed over 613,000 people as of June. However, if employee accounts hold water, even at the more conservative 40,000-50,000 mark, the actual toll would represent a seismic shift, equivalent to 7-8 percent of the workforce.

Free Press Journal reached out to TCS for comment, and the company said, "These speculations are incorrect and misleading. As communicated earlier, the impact is limited to 2 percent of our workforce.".

This wave of uncertainty follows a disturbing incident reported a few days ago, where a terminated TCS employee in Noida alleged physical assault by HR staff during his exit process. The employee claimed his phone was snatched and his right arm twisted after he sought clarification on his dismissal and severance. Police were called, and a complaint was filed with video evidence, though the involved HR personnel did not appear for questioning. TCS dismissed the allegations as "inaccurate and a misrepresentation of facts."