With clearance to recruit 5,505 H-1B workers in fiscal year 2025, the IT company became the second biggest employer of newly granted H-1B beneficiaries in the United States.
Senators Question TCS Layoffs
US senators have questioned Tata Consultancy Services (TCS), the biggest provider of IT services in India, about layoffs, including those involving American employees. They want to know whether the business has replaced any American workers with H-1B workers.
Ten large corporations, including TCS (the sole Indian business) and others (Amazon, Apple, and Deloitte, among others), have received letters from Senate Judiciary Committee Chairman Charles E. Grassley and other members on matters pertaining to H-1B visas.
US Senators Raise Concerns
“Some concerning employment patterns in the IT sector worry us… We cannot overlook the large, continuous layoffs that you and your counterparts in C-suites have ordered over the last several years when assessing the high unemployment rate for American computer workers,” the letter said.
US senators told TCS CEO Krithivasan that the company has been firing American workers and submitting requests for H-1B visas for thousands of foreign workers.
With clearance to recruit 5,505 H-1B workers in fiscal year 2025, the IT company became the second biggest employer of newly granted H-1B beneficiaries in the United States. In addition, it has let go of more than 12,000 workers globally, including Americans.
TCS Faces H-1B Scrutiny
According to the letter, “TCS let off roughly five dozen workers in its Jacksonville office alone last month (August).”
The Equal Employment Opportunity Commission has already opened an inquiry against TCS for allegedly terminating senior American employees in favor of recently recruited South Asian H-1B workers. While this inquiry is continuing, TCS is doing itself no favors by substituting H-1Bs for Americans,” it said.
The questions included whether the pay and benefits package for H-1B hires are comparable to those of American workers with the same qualifications and whether the company outsources any hiring to staffing firms or contractors that place H-1B workers within the organization.
TCS Under Global Scrutiny
US Senators have requested that the business respond by October 10, 2025, with supporting documentation.
The Nascent Information Technology Employees Senate (NITES), an IT union, has called for the Indian government to launch a similar investigation into “mass terminations, unfair practices, and systematic discrimination by TCS in India” right now.
The union has filed a formal protest against TCS’s mass terminations with the Maharashtra Labour Ministry and Chief Minister Devendra Fadnavis, according to NITES President Harpreet Singh Saluja. He said that over 2,500 workers in Pune alone had been pressured to leave their jobs without giving notice, receiving payment, or receiving official notification, all required by the Industrial Disputes Act, 1947.
TCS Offers Extended Severance
According to several reports on Thursday, TCS is providing some of its laid-off workers with severance benefits that last up to two years.
“In line with our firm’s principles, people impacted by our recent drive to realign talents have been afforded care and assistance as is due to them in each of the unique situations,” the company stated in a statement when questioned about the matter.