Tata Consultancy Services (TCS) , India's top IT outsourcing company, has categorically denied discrimination charges over the recent layoffs in the US. The company is already being probed by the US Equal Employment Opportunity Commission (EEOC) after charges were made that American workers, especially those aged over 40 and of non-South Asian origin, were disproportionately affected by the layoffs, while their South Asian counterparts, including some holding H1-B visas, were allegedly spared.

TCS has termed these allegations as "meritless and misleading." In a press release regarding the claims, the company reiterated its commitment to being an equal opportunity employer and clarified that its operations in the US are governed by the highest levels of integrity and values. TCS reaffirmed its decades-old tradition of embracing diversity and giving equal opportunities to all employees irrespective of their background or nationality.

The allegations of bias were said to have been raised by ex-staff who were impacted by the layoffs that were carried out throughout 2023. The claims have generated worries regarding the practices of managing its workforce by the company, with critics claiming that TCS preferred its Indian workers during a period of mass layoffs.

In its defense, TCS claimed that the accusations are not fact-based and characterized them as a part of a larger misunderstanding. "TCS has always promoted diversity and equality, and it is important to see the larger picture of workforce changes during the times of economic unpredictability," the firm said.

This is not the first time TCS has been accused of such. The same charges were brought in the UK, where a group of ex-TCS employees charged age and nationality discrimination in an employment tribunal. Stories in The Guardian reported that these employees also alleged to have been treated poorly when they were let go. Although TCS refuted these claims, the company's strategy for reducing its workforce has been under growing scrutiny.

The company's move on the layoff controversy comes in the wake of financial troubles faced by TCS. This week, earlier, news emerged that TCS had delayed salary increases for India staff as it rides out global headwinds, such as US tariff impacts. Also, the attrition level for TCS marginally increased, reaching 13.3 percent in Q4 of the fiscal year, from 13 percent in the last quarter.

On a financial performance basis, TCS saw its consolidated net profit for Q4 dip by a nearly 2 percent year-on-year to Rs 12,293 crore, from Rs 12,502 crore for the same quarter last year. The top line, however, had a better trend, increasing by 5.3 percent year-on-year to Rs 64,479 crore, from Rs 61,237 crore in the same quarter last year.

In spite of these issues, TCS continues to focus on increasing its global presence and strengthening its position as a market leader in the IT outsourcing space. The company's initiatives to tackle workforce management challenges and adjust to changing global market dynamics will most likely be instrumental in determining its future course.

As the EEOC probe goes on, TCS is under mounting pressure to prove that its employee treatment and layoff policies are equitable, just, and in line with its core values of diversity and inclusion.