NITES Appeals To Maharashtra CM Against TCS Layoffs, Alleging Forced Resignations Of 2,500 Mid-To-Senior Staff
NITES claims these employees, some with 10–20 years of service, were coerced into resigning, disguised as voluntary exits, in violation of the Industrial Disputes Act, 1947.
The National Information Technology Employees Senate or the NITES has escalated its complaint against Tata Consultancy Services, urgently appealing to the Maharashtra Chief Minister to intervene in the alleged mass termination of nearly 2,500 mid-to-senior professionals in Pune.
NITES claims these employees, some with 10–20 years of service, were coerced into resigning, disguised as voluntary exits, in violation of the Industrial Disputes Act, 1947.
This labor crisis shows the broader, softened hiring environment noted by the staffing industry, even as TeamLease Services Ltd. reported strong Q1 financial results.
The TCS Controversy: A Staffing Trend
The appeal follows a complaint submitted to the Labour Ministry in July 2025. NITES asserts that despite a directive from the Ministry in August, TCS continued the terminations.
The union labels the action "mass exploitation, not genuine restructuring," demanding an investigation into the illegal activity and lawful compensation for affected workers. This situation reflects a troubling trend of cost rationalization impacting experienced IT staff across the sector.
TeamLease Financials and Staffing Outlook
TeamLease on a consolidated basis recorded a strong first quarter FY26, with net profit jumping 27.7% to Rs 26.5 crore and revenue up 12.1% to Rs 2,891 crore. The Ebitda rose 37.7% to Rs 30.6 crore.
The company's core staffing segments face uneven demand. The Specialized Staffing segment which brings 6% revenue, reports that IT hiring remains cautious due to muted demand and macro concerns, including issues related to the H1-B visa process.
TeamLease is countering this weakness by focusing on Tier-2 IT, Global Capability Centers, and in-demand digital skills, though its core specialized headcount slightly decreased from 279 to 271. The BFSI sector is also experiencing muted trends.
To navigate these macro trends, TeamLease is diversifying its focus toward non-IT and specialised digital skills. The management is committed to maintaining its financial year 2026 guidance, expecting to deliver at least 30% Ebitda growth year on year for the remaining quarters.
This continued growth is expected to lead to a gradual recovery in overall margins, projected to reach 7.0 to 7.2% by the year-end. The company's strategy hinges on leveraging the strength of its General Staffing and HR Services segments to offset the cautious outlook in Specialized IT Staffing.
