TCS Layoffs: Who Will Be Affected By Tata Consultancy's Massive Job Cut, What Will Axed Employees Receive

Tata Consultancy Services (TCS) is planning to lay off around 12,000 employees in the next few months, reportedly to realign its workforce strategy. The decision is likely to affect the firm's 2 per cent global workforce amid evolving operational requirements. However, senior TCS officials have assured that the affected employees will be given proper assistance by the firm. They further stated that the employees will also be given additional benefits to minimise the inconveniences. TCS has recently announced several changes in its internal human resource policy, directing the employees to maintain a minimum of 225 billable days annually.

While providing details, TCS CEO and MD K Krithivasan, in an interview with Moneycontrol, stated that the layoffs will be handled "gradually" and "compassionately". He further stated that the layoff has nothing to do with AI giving productivity gains. Krithivasan stated that the selected employees will first be contacted, and the firm will also try to deploy them in some other departments.

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“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. It will be coming through the year. We won’t do it in a hurry. We will first talk to the people that could be impacted. We will provide them an opportunity. When we are not able to provide the opportunity, then we will do what we need to do," Krithivasan stated in the interview.

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Apart from this, the affected employees will also receive several benefits, including notice-period pay, additional severance benefits, insurance extensions, outplacement support, and counselling services. Earlier on Sunday, the firm stated that the employees belonging to the middle and senior grades are more likely to be affected in the process.