In major setback for IT employees, Tata Consultancy Services (TCS), India’s largest IT services exporter, is planning to layoff around 12,000 employees, or roughly 2 percent of its global workforce. Here’s what we know so far.
The IT giant, TCS is planning to cut 12,000 jobs over the course of the current financial year. The decision is reportedly a part of the company’s broader effort to realign its workforce strategy and position itself as “future-ready” organisation. (Image: File Pic)
The move follows after TCS revised its internal human resource policies, mandating employees to maintain at least 225 billable days annually and limiting bench time to 35 days. (Image: AI-Generated)
Issuing a statement, the IT giant mentioned, “TCS is on a journey to become a future-ready organisation. This includes strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model.” (Image: File Pic)
It added, “Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year,” (Image: AI-Generated)
However, TCS CEO and MD K Krithivasan in an interview with MoneyControl said, “No, this is not because of AI giving some 20 per cent productivity gains. We are not doing that. This is driven by where there is a skill mismatch, or where we think that we have not been able to deploy someone.” (Image: File Pic)
Speaking about the employees who could be affected, he added that the layoffs will be handled gradually, with a clear process in place to identify impacted employees and explore internal redeployment options first. (Image: AI-Generated)
He further mentioned that TCS will follow its established HR policies, which include notice-period pay, additional severance benefits, insurance extensions, outplacement support, and counselling services. (Image: AI-Generated)
Tata Consultancy Services (TCS) confirmed that the layoffs will be phased out over the rest of FY26. (Image: File Pic)
