TCS Layoffs Under Scrutiny; Senators Demand Answers on US Job Cuts, H-1B Hiring

US Senate Judiciary Committee Chairman Senator Charles E. Grassley, along with Senator Richard J. Durbin, has written to Indian IT services giant Tata Consultancy Services (TCS) regarding its recent layoffs in the US.

In a letter addressed to CEO K. Krithivasan, they raised concerns over TCS’ plans to cut more than 12,000 jobs worldwide, including American staff. They pointed to the dismissal of around five dozen employees at TCS’ Jacksonville office in Florida last month.

Earlier, a local news portal Jacksonville Daily Record reported that TCS will permanently lay off 58 employees at its Jacksonville office on October 18, 2025. The affected roles include developers, tech leads, system administrators, and service managers. The move follows the termination of TCS’s IT services contract with CSX Corp. in June, ending a partnership that began in 2022.

The Senators are demanding answers to a series of questions, as the company faces criticism on social media and online for allegedly forcing employees to resign. US lawmakers also questioned why TCS continues to file thousands of H-1B visa petitions while “at the same time laying off American employees.”

“In fiscal year 2025, TCS received approval to hire 5,505 H-1B employees, making it the second-largest employer of newly approved H-1B beneficiaries in the nation. With homegrown American talent sidelined, it is hard to believe that TCS cannot find qualified American tech workers to fill these positions,” the letter said.

The Senators noted that TCS is already under investigation by the Equal Employment Opportunity Commission for allegedly replacing older American workers with newly hired South Asian H-1B employees.

“TCS is doing itself no favours by replacing Americans with H-1Bs while this investigation is ongoing. We would like to give you an opportunity to explain yourself. Please provide answers to the following questions, with accompanying data where appropriate, by October 10, 2025,” they wrote.

Among the nine questions sent to TCS CEO, lawmakers asked why the company continues to recruit foreign tech workers despite recent mass layoffs of American staff. They also sought clarity on whether TCS prioritises US applicants before filing H-1B petitions, whether recruitment ads are hidden, and if American workers have been displaced.

The Senators further pressed for details on pay parity between H-1B hires and US staff, the number of foreign workers employed at entry-level wages, and the extent to which TCS relies on contractors or staffing firms. They also demanded disclosure on how many H-1B employees are directly paid by TCS versus outsourced to other firms.

The letter follows US President Donald Trump’s recent decision to sharply raise the H-1B application fee to $100,000. Analysts believe this move could hurt the margins of IT services companies that employ thousands of Indian workers in the US, although the number has declined in recent years.