Article Today, New Delhi:
Tata Consultancy Services (TCS), one of India’s largest IT firms, has initiated a workforce reduction plan that will affect nearly 12,000 employees, about two per cent of its global strength. The company has cited client demands, automation, and shifting technology needs as reasons for the move. However, the scale of the retrenchment has raised questions about employee security in the sector.
Severance and Support Packages
TCS has offered severance benefits ranging from six months to two years of salary depending on years of service. Employees with 10 to 15 years of experience are being offered one and a half years’ pay, while those with over 15 years are entitled to two years. In addition, the company has stated that it will cover agency fees for three months and extend counselling through its “TCS Cares” programme. Critics, however, argue that such measures cannot compensate for the long-term impact of job loss.
Early Retirement Option
The company has also announced an early retirement option with full benefits along with additional severance. Officials claim that employees on the bench for extended periods may explore new projects through the resource management group. Industry observers note, however, that such options are limited in reach and cannot offset the widespread nature of the layoffs.
Severance and Support Packages
TCS has offered severance benefits ranging from six months to two years of salary depending on years of service. Employees with 10 to 15 years of experience are being offered one and a half years’ pay, while those with over 15 years are entitled to two years. In addition, the company has stated that it will cover agency fees for three months and extend counselling through its “TCS Cares” programme. Critics, however, argue that such measures cannot compensate for the long-term impact of job loss.
Early Retirement Option
The company has also announced an early retirement option with full benefits along with additional severance. Officials claim that employees on the bench for extended periods may explore new projects through the resource management group. Industry observers note, however, that such options are limited in reach and cannot offset the widespread nature of the layoffs.
Market Reaction
Following reports of the job cuts, TCS shares fell by 0.94 per cent to Rs. 2,932.50. Tech Mahindra also witnessed a decline of 1.03 per cent, closing at Rs. 1,429.05. Analysts point out that while automation and reskilling are reshaping the IT sector, sudden large-scale job cuts risk eroding employee confidence and tarnishing corporate reputation.
Broader Implications
The developments highlight a growing concern over job security in India’s IT industry. While companies continue to expand automation and adopt new technologies, employees fear that loyalty and long service no longer guarantee stability. Experts caution that such actions may undermine the image of India’s IT giants as responsible employers and could trigger wider debates on corporate accountability.
