“Misleading and Meritless”: TCS Denies Discrimination Claims Amid US Layoff Controversy
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India's leading IT company, Tata Consultancy Services (TCS), strongly refuted the charges of discriminatory layoffs inAmerica as "meritless and misleading." The row arose because of complaints submitted to the US Equal Employment Opportunity Commission (EEOC) that the firm was biased toward Indian workers, especially those who were on H-1B visas, in a recent spate of layoffs.
The Bloomberg news article shows that non-South Asian employees aged 40 or older filed complaints about their targeted layoffs compared to younger Indian staff who maintained their positions. Multiple employees filed formal complaints during 2023 alleging discriminatory targeting of workers because of their national background and age demographics.
In its official response, TCS reaffirmed its values and hiring practices. “TCS has a strong track record of being an equal opportunity employer in the US, embracing the highest levels of integrity and values in our operations,” the company stated, refuting all claims of bias.
This issue has spread its impact throughout countries that extend beyond the United States. A discrimination case appeared in United Kingdom employment tribunals when three former TCS employees presented evidence about national and age-based discrimination, according to The Guardian newspaper. The international developments have prompted increased oversight for TCS regarding their human resource management globally and decisions about employment.
The ongoing troubles faced by the employees of TCS continue to mount as the company delayed India's salary hike earlier this month. The company officials cited economic uncertainty due to U.S. tariffs as the main reason behind delaying the decisions. Thousands of employees are uncertain about their paycheck changes resulting from this delayed decision by company administrators.
The recently published Q4 financial results of TCS demonstrated a minor decrease in their consolidated net profit totals. TCS reported ₹12,293 crore as its March 2025 quarter profit, representing a 2% decline compared to the ₹12,502 crore profit earned in the same period during the previous year. Operations revenue increased 5.3% during the period, while net profits registered a slight decrease this year as they fell to ₹12,293 crore compared to ₹12,502 crore from the previous year.
The workforce attrition rate has witnessed a minimal increase, reaching 13.3% during Q4 after maintaining a previous quarter level of 13%. Indian IT sector attrition rates seem to be rising because analysts link it to increasing international economic challenges coupled with unmet employee expectations.
TCS manages to keep its position strong as one of the leading companies in global tech outsourcing services. The company maintains substantial U.S. operations while employing approximately 600,000 personnel worldwide, so it faces mounting demands to prove transparent and equitable human resource procedures.
The continuing EEOC investigation currently shows no sign of formal charges, but its ultimate results may determine future operational frameworks for Indian tech firms that work abroad, particularly given existing and upcoming immigration regulation restrictions.
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