‘Extremely exaggerated numbers’: TCS chief HR dismisses rumours of 50,000-80,000 layoffs; says 6,000 people released
Extremely
exaggerated numbers’: TCS chief HR dismisses rumours of 50,000-80,000 layoffs; says 6,000 people released” title=”TCS, which is Tata Group’s most profitable entity, had in July announced a workforce reduction of 12,261 positions.
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TCS Layoffs & Severance Packages
TCS, which is Tata Group’s most profitable entity, had in July announced a workforce reduction of 12,261 positions, constituting about 2% of its staff, amid artificial intelligence disruptions and uncertain market conditions affecting business demand.Earlier this week, a TOI report said that TCS has implemented a structured severance programme for the about 12,000 staff members, mainly impacting mid and senior leadership positions.
The severance packages apply to various employee categories, including those unassigned to projects, individuals lacking updated skills, and long-term employees with more than 15 years of service.Employees whose competencies became obsolete or who failed to acquire new skills received three months’ notice period compensation and additional severance ranging from six months to one year’s salary.
The compensation amount was determined based on length of service, with six months’ salary as the base offering, the report said.The organisation has consistently adjusted its workforce structure to address evolving business requirements.
During the 2014-15 financial year, the company reduced its workforce by over 3,000 positions, representing about 1% of its total staff.The layoffs predominantly affect senior and middle-management positions.
It represents a significant organisational change: the integration of AI technologies whilst releasing staff unsuitable for redeployment within the company.
