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US Senate Questions TCS Over Layoffs and Rising Tech Unemployment

On September 24, 2025, the United States Senate Judiciary Committee issued a strongly worded letter to Tata Consultancy Services (TCS) CEO, Krithi Krithivasan. The letter expressed deep concerns over troubling employment trends in the technology industry, particularly the rising rate of unemployment among American workers in the sector. The senators highlighted that the unemployment rate in the tech industry is now “well above” the overall national average.

Background of the Issue

The Senate’s letter references reports from the Wall Street Journal and data from the Federal Reserve, both of which confirm that recent American graduates in science, technology, engineering, and mathematics (STEM) fields are facing higher unemployment rates compared to the broader workforce. At a time when the US economy depends heavily on innovation and digital infrastructure, the difficulties faced by new graduates are a red flag for policymakers.

In addition, the letter points directly to the role of large IT service companies like TCS, which have conducted mass layoffs in recent years. According to the senators, these decisions have worsened the situation for American workers and created uncertainty in the job market.

Senate’s Concerns with TCS

The letter accuses TCS of carrying out massive layoffs “ordered by you,” directly addressing the CEO. This strong language signals that lawmakers want corporate leaders to take personal responsibility for their decisions. TCS has reportedly announced plans to reduce its workforce by more than 12,000 employees worldwide, including a significant portion of its American staff.

For instance, the letter highlights that TCS recently laid off nearly five dozen employees at its Jacksonville, Florida office alone. Such examples were used to emphasize the real-life impact of these corporate decisions on local communities and workers.

Implications for American Workers

The Senate’s intervention is not just symbolic; it reflects growing pressure on foreign IT firms operating in the US. Policymakers are concerned that companies prioritize cost-cutting and outsourcing at the expense of local employment opportunities. With thousands of jobs being eliminated, questions arise about whether companies are doing enough to support American workers.

Key Themes Raised by the Senate

• Accountability: The letter puts responsibility directly on executives for approving layoffs.
• Impact on STEM Graduates: New American graduates are struggling to find jobs in their fields, raising questions about corporate hiring priorities.
• Transparency: Senators want clarity on how many jobs are being cut, which roles are affected, and what steps are being taken to protect workers.
• Future of the US Tech Workforce: If layoffs continue, the long-term competitiveness of American workers could be weakened.

How TCS Might Respond

In the past, TCS and other IT companies have justified layoffs as part of restructuring efforts or adjustments to global demand. They often point to investments in US delivery centers, local hiring programs, and reskilling initiatives. However, the Senate’s letter suggests that such justifications may no longer be enough to satisfy lawmakers.

Bigger Picture: What This Means for Indian IT Firms

This issue is not limited to TCS. Other Indian IT companies such as Infosys and Wipro may also face similar scrutiny as the US government pushes for stronger protections for American jobs. Lawmakers may propose stricter rules around visas, hiring transparency, and outsourcing policies.

For Indian IT firms, this is a reminder that while the US is a critical market, their operations will always be closely watched by policymakers. Balancing global efficiency with local employment commitments will be key to maintaining trust and business continuity.

Conclusion

The US Senate’s letter to TCS represents a serious escalation in the conversation about tech jobs, outsourcing, and corporate accountability. While companies argue that layoffs are necessary in a changing market, lawmakers are making it clear that the human cost of these decisions cannot be ignored. The coming months may bring more hearings, data requests, and possibly new regulations aimed at protecting American tech workers.

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