Here’s the messy truth about India’s IT job market right now: the old promise—“learn Java, get a job, coast for a decade”—is fading. The sector still creates opportunities, but the ground rules are changing fast, and sometimes painfully.
Over the past week, the IT employees’ union NITES alleged that TCS forced around 2,500 employees in Pune to resign—calling it a violation of the Industrial Disputes Act. TCS has publicly denied this, calling the claims “mischievous.” Meanwhile, TCS is also in the middle of a separate, global workforce reduction of ~2% (about 12,000+ roles), part of a bigger industry reset driven by AI and cautious client spending. Put simply: the anxiety you’re feeling in the Indian IT corridor right now isn’t random—it’s systemic.
Tech layoffs in India: what’s actually happening
Let’s ground this in facts:
· The allegation in Pune (Oct 2025): NITES claims TCS asked ~2,500 Pune employees to resign and has written to the Maharashtra CM, arguing this breaches the Industrial Disputes Act. Several outlets reported the complaint; TCS, for its part, has denied any coercion. The Union Labour Ministry has reportedly asked the state labour department to act. Translation: the matter is live, contested, and under scrutiny.
· The global cuts (Aug–Oct 2025): TCS said it would reduce roughly 2% of its global workforce—over 12,000 roles—framed as realignment for AI-era skills. Independent coverage points to this being TCS’s largest cut to date. This isn’t just belt-tightening; it’s a reshuffle toward AI, cloud, and platform skills.
· The broader industry picture: Despite headline layoffs, India’s tech sector still added a net ~126,000 jobs in FY25, taking the workforce to ~5.8 million. You read that right: both things can be true—firms trimming in some pockets while the overall industry grows in others, especially GCCs (global capability centres).
· The long arc at TCS: Before 2025’s cuts, TCS’s FY24 headcount fell by ~13,249—its first annual decline in 19 years—signalling the early edge of this transition.
The legal knot: consent, “forced” resignations, and Section 25N
India’s labour law is clear on one big thing: retrenchment in large establishments (100+ workmen) requires prior permission from the appropriate government (Section 25N of the Industrial Disputes Act). That’s separate from “voluntary” resignations. If workers are pressured to resign to sidestep the Act, that’s where unions cry foul. The NITES complaint lands squarely on this distinction. The investigation will hinge on documentation, notices, and whether resignations were genuinely voluntary.
Why mid-career pros feel the heat
Hiring hasn’t died; it’s shifted. Demand is surging in AI/ML, data engineering, cybersecurity, product/platform engineering, FinOps/CloudOps, and domain-heavy roles. Meanwhile, mid-senior roles in legacy maintenance, manual testing, and basic L1 support face pressure as automation bites. Multiple restructurings across global tech firms this year—India included—fit that pattern.
What this means if you work in Indian IT
Think of this as a rebalancing rather than an apocalypse. The moves are uncomfortable, but they’re also directional. Here’s how to tilt the odds your way:
1. Anchor to revenue. If your work doesn’t clearly link to cost savings or growth (think: AI-assisted delivery, SRE for uptime, platform modernization that speeds releases), your role can look optional. Make that link explicit in appraisals and resumes. (The industry narrative is productivity and transformation; speak that language.)
2. Bet on compound skills. Pure-play “tool” skills age fast. Pair technical depth (Python/Go, distributed systems, MLOps, cloud security) with domain fluency (BFSI risk, pharma compliance, manufacturing quality, telecom OSS/BSS). GCCs prize that mix—and they’re where much of the net hiring is.
3. Certs help—portfolios help more. Cloud (AWS/GCP/Azure), security (CISSP, CCSP), and data (Databricks, Snowflake) certs still open doors. But shippable artifacts—a GitHub repo with infra-as-code, an LLM-powered internal tool, or a reproducible data pipeline—speak louder.
4. Negotiate with information. If you’re offered an exit, ask (in writing) about severance, benefits continuation, garden leave, and outplacement. Compare with published benchmarks and any public guidance that emerges as cases like TCS’s evolve. Document everything. (Outcome may vary by tenure and grade.)
5. Know your rights. If you suspect “resignation under duress,” seek counsel before signing. Under Section 25N, mass retrenchment without required permissions is contestable. Keep copies of emails, meeting notes, and any HR communication.
What to watch next
· State labour action in Maharashtra. If the government probes and publishes findings, it will set an example for how similar disputes get handled in IT hubs.
· TCS’s next commentary (Q2/Q3). Expect pointed questions from analysts on how the 2% reduction is progressing, severance norms, and skill-mix plans.
· GCC hiring vs services resizing. If GCC momentum continues, the mix of Indian tech jobs will keep shifting towards product/platform and domain-heavy work even if traditional outsourcing trims.
Bottom line
India’s IT isn’t collapsing; it’s reallocating. The NITES–TCS fight highlights a real tension: how companies restructure at speed without stepping on labour rights. The winners—companies and professionals alike—will be the ones who treat this not as a round of musical chairs, but as a skills upgrade sprint with rules that must still be followed