TCS: TCS hits back at layoff bias allegations, calls allegations 'misleading'

Tata Consultancy Services (TCS), one of India's leading IT outsourcing giants, has strongly denied allegations of discrimination during recent layoffs in the US. The company is currently under investigation by the US Equal Employment Opportunity Commission (EEOC) following claims that American employees, predominantly over the age of 40 and of non-South Asian descent, were disproportionately affected by job cuts, while their South Asian colleagues, some on H1-B visas, were reportedly spared. TCS has rejected these allegations as "meritless and misleading." In a statement issued in response to the claims, the company emphasised its commitment to being an equal opportunity employer and stressed that its operations in the US maintain the highest standards of integrity and values. The company reiterated that it has a long-standing track record of embracing diversity and providing equal opportunities to all its employees, regardless of nationality or background. The accusations of bias were reportedly brought forward by former employees who were part of the layoffs, which occurred throughout 2023. These claims have sparked concerns about the company's approach to workforce management, with critics suggesting that TCS was favouring its Indian employees during a period of significant job cuts. TCS further defended its position by asserting that such allegations are not substantiated by any factual evidence, labelling the claims as part of a broader misunderstanding. "TCS has always valued diversity and equality, and it is important to understand the broader context of workforce adjustments in times of economic uncertainty," the company statement added. This is not the first time TCS has faced such allegations. Similar accusations were made in the UK, where a group of former TCS employees alleged age and nationality-based discrimination in an employment tribunal. The Guardian reported that these workers also claimed to have faced unfavourable treatment during layoffs. While TCS denied these accusations, the company's handling of workforce reductions has come under increasing scrutiny on multiple fronts. The company's response to the layoffs controversy comes at a time when TCS is also navigating financial uncertainty. Earlier this week, reports indicated that TCS had delayed salary hikes for employees in India, as the company grapples with global challenges, including the impact of US tariffs. Furthermore, the attrition rate for TCS saw a slight increase, rising to 13.3 percent in Q4 of the fiscal year, up from 13 percent in the previous quarter. In terms of financial performance, TCS reported a near 2 percent year-on-year drop in consolidated net profit for Q4, which fell to Rs 12,293 crore, down from Rs 12,502 crore during the same period last year. However, the company's revenue showed a more positive trend, growing by 5.3 percent year-on-year to Rs 64,479 crore, compared to Rs 61,237 crore in the corresponding quarter of the previous year. Despite these challenges, TCS remains committed to expanding its global presence and reaffirming its position as a leading player in the IT outsourcing sector. The company's efforts to address workforce management concerns and adapt to changing global market conditions will likely play a key role in shaping its future trajectory. As the investigation by the EEOC continues, TCS faces mounting pressure to demonstrate that its policies on employee treatment and layoffs are fair, equitable, and aligned with its core values of diversity and inclusion.