Amid an investigation by the U.S. Equal Employment Opportunity Commission (EEOC), Tata Consultancy Services (TCS), leading Indian IT outsourcing major, has denied allegations of discrimination during recent layoffs in the United States.
The EEOC investigation was launched following allegations that American employees, predominantly over the age of 40 and of non-South Asian descent, were disproportionately affected by job cuts, while their South Asian colleagues, some on H-1B visas, were spared, according to media reports.
TCS has rejected these allegations as “meritless and misleading.” Emphasizing its commitment to being an equal opportunity employer TCS stressed that its operations in the U.S. maintain the highest standards of integrity and values.
In a statement, the company reiterated that it has a long-standing track record of embracing diversity and providing equal opportunities to all its employees, regardless of nationality or background.
The accusations of bias were reportedly brought forward by former employees who were part of the layoffs, which occurred throughout 2023. These claims have sparked concerns about the company’s approach to workforce management, with critics suggesting that TCS was favoring its Indian employees during a period of significant job cuts.
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Asserting that such allegations are not substantiated by any factual evidence, TCS labelled the claims as part of a broader misunderstanding. “TCS has always valued diversity and equality, and it is important to understand the broader context of workforce adjustments in times of economic uncertainty,” the company stated.
TCS is India’s biggest IT services firm by revenue, with more than 600,000 employees globally. Part of the Tata Group, TCS serves U.S clients such as airlines, automakers, financial institutions, and more.
According to Bloomberg News, allegations of discrimination against the TCS “have sparked concerns about the company’s approach to workforce management,” with many calling out the company for “favoring its Indian employees during a period of significant job cuts. The allegations also “underscore longstanding criticisms of outsourcing companies’ use of the H-1B visa program,” the agency said.
In April last year, Rep. Seth Moulton (D-MA) wrote to the EEOC’s commissioners and its then-chair, Charlotte Burrows, asking the agency to consider opening an investigation into TCS. He said residents of his state were among more than two dozen people who had submitted complaints to the agency. TCS’s actions “may have constituted a pattern-or-practice of discrimination impacting Americans that falls within the EEOC’s jurisdiction,” he wrote. “Additionally, it may also have been a potential misuse of U.S. work visa programs designed to fill U.S. labor shortfalls.”