IT giant TCS not looking at layoffs, likely to announce hikes for employees soon
During the third quarter of FY23, TCS workforce stood at 613,974 -- a net reduction of 2,197 employees compared to a headcount of 616,171 employees in the September 2022 quarter.
PremiumAmidst layoffs over the world especially from tech biggies, Indian IT giant, Tata Consultancy Services (TCS) is not considering the same. Instead, TCS believes in grooming talent for longer careers once it hires an employee. While shunning the layoff plan, TCS chief Human Resources officer Milind Lakkad on Sunday hinted that the company will be announcing hikes that will be similar to earlier years. In the third quarter of FY23, this Tata Group-backed company reduced its workforce by 2,197 employees sequentially.
Lakkad told PTI, "we don't do that (layoffs), we believe in grooming talent in the company…(there will be) no layoffs." He was answering to a specific question which was related to whether TCS will carry any layoffs or involuntary attrition.
Explaining why companies lay off, Lakkad explained that many companies are forced to take such a step because they hired more than they wanted.
Whereas TCS, he cited as "cautious", believes that once staff member joins, it becomes the company's responsibility to make them productive and derive value.
In areas where there is a gap between the skill sets required and what an employee possesses, Lakkad highlighted that TCS then focuses on training the employee by giving her more time.
He told PTI, that TCS will be announcing hikes that will be similar to earlier years.
In regards to startups laying off people, Lakkad revealed that TCS will be looking to hire such impacted workers.
He said, TCS is doing exciting work across different industries in different technologies, and for it, there is a requirement for some phenomenal talent to come in and participate. They are getting it from startups, people who have actually done some good work in those companies and have short-term career challenges.
When asked about whether the reduction in the workforce during December 2022 quarter was a one-off, Lakkad did not specify if March 2023 quarter will see an addition or continue with a decline in the headcount.
However, during the Q3FY23 press briefing on January 9th, Lakkad indicated that in Q4 hiring may be muted or plus by a couple of thousands.
In the press conference, Lakkad said, "We are aware that we made a significant investment in hiring fresh talents last year as well as the last two quarters of this year. And also, significant investment in the talent development of these people to make them productive now. And that investment is now paying off. But that does not indicate anything on the demand side."
That time, Lakkad further stated that the company has added close to 40,000 trainees and fresh campers so far and he thinks that number will remain. However, he also signalled that TCS may add a few thousand here and there going forward in terms of headcount.
On hiring plans, going forward, Lakkad said in the conference that the company hasn't stopped lateral hiring at all. He added that the company is adding laterals as the business demand every quarter.
For the fourth quarter, he said, the company may go for a few thousand plus in terms of headcount or may be muted.
In Q3FY23, TCS workforce stood at 613,974 -- a net reduction of 2,197 employees compared to a headcount of 616,171 employees in the September 2022 quarter.
In the third quarter, the company's IT services attrition dropped marginally to 21.3% on an LTM basis which is lower than 21.5% in Q2FY23. TCS said, the attrition rate "is expected to fall further in the coming quarters."
(With inputs from PTI)
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