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‘Allegations that TCS engages in unlawful discrimination are meritless and misleading. TCS has a strong track record of being an equal opportunity employer in the US,’ says a TCS spokesperson in a statement.
The ongoing investigation in the US against TCS comes after the allegations were raised by former employees, largely of non-South Asian descent and over the age of 40.
Tata Consultancy Services (TCS), India’s largest IT services company, has come under the scrutiny of the US Equal Employment Opportunity Commission (EEOC) for alleged discriminatory Layoffs targeting Americans. However, the company has rejected the allegations calling them “meritless and misleading”.
According to Bloomberg, the ongoing investigation comes after the allegations were raised by former employees, largely of non-South Asian descent and over the age of 40. Complaints since 2023 have claimed that these workers were targeted during layoffs while their Indian colleagues, some on H1-B visas, were spared.
Responding to this, a TCS spokesperson in a statement said, “Allegations that TCS engages in unlawful discrimination are meritless and misleading. 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.”
According to The Guardian, similar claims were made before an employment tribunal in the UK, where three former TCS workers said they faced discrimination based on age and nationality.
Earlier this week, TCS delayed wage hikes in India, as the management remained unclear on the increment cycle amid global uncertainty due to US tariffs.
Considering the uncertain business environment, we will decide during the year when to make that happen,” its CHRO Milind Lakkad said during the post-Q4 earnings press conference.
The company’s total workforce stood at 6,07,979 at the end of March 2025, an addition of 625 persons as compared with 607,354 as of December 31, 2024.
Its IT services attrition rate (last twelve month basis) stood at 13.3 per cent during the March 2025 quarter, as against 13 per cent in the previous quarter.
The country’s largest IT services company on April 10 reported a 1.68 per cent decline YoY in its net profit to Rs 12,224 crore for the fourth quarter ended March 31, 2025 (Q4 FY25). However, during the full financial year 2024-25, TCS’ net profit rose 5.76 per cent to Rs 48,553 crore.
The company, however, posted a record total contract value (TCV) of $12.2 billion for the quarter, with a healthy book-to-bill ratio of 1.6.
The IT sector has been facing global headwinds due to the ongoing trade war and a likely US recession.
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