Tata Consultancy Services (TCS) is facing intense scrutiny in the United States following its recent employee layoffs. Two U.S. senators have directly written to TCS CEO K. Krithivasan, expressing serious concerns over the company’s hiring and termination practices. Recently, TCS reportedly laid off around 60 employees from its Jacksonville office, while simultaneously applying for 5,505 H-1B visas for 2025.

The Senate Judiciary Committee questioned why qualified American employees are being terminated while foreign H-1B workers are being hired, often at lower salaries. Allegations have long persisted that TCS replaces senior American employees with H-1B visa holders from South Asia. The Equal Employment Opportunity Commission (EEOC) is already investigating these claims. Senators have demanded a full explanation by October 10, including details about pay differences and employment practices.

Globally, TCS is also restructuring its workforce, planning to reduce approximately 12,000 employees (2% of staff) in the 2025–26 fiscal year. Severance packages vary based on service duration, ranging from three months to two years, but employees on bench for more than eight months without project allocation receive only three months’ pay.