TCS Layoffs: IT giant offering two years' severance package to laid off employees, says report — Key details

TCS layoffs: India's largest IT giant Tata Consultancy Services (TCS) is offering severance packages of up to two years to some of its employees as the company moves on to restructuring plans amid AI push and shifting client demand, according to a report by Moneycontrol.

As per the report, the severance packages will be provided to long-serving employees who are facing TCS layoffs since their roles no longer align with the company's needs.

Nearly two months after reports surfaced that Tata Consultancy Services (TCS), India’s largest IT firm, would cut 2 per cent of its workforce or over 12,000 jobs, the impact is being felt across the workforce. TCS has allegedly forced around 2,500 employees in Pune to resign from their jobs, the IT employees' body NITES said in a letter to Maharashtra Chief Minister on Wednesday.

However, TCS said, only a limited number of employees “have been affected by our recent initiative to realign skills in our organisation.”

TCS layoffs: Who is affected and what do they get

According to the Moneycontrol report quoting sources, the TCS layoffs amid company restructuring will primarily affect employees whose skills have become redundant or those who have not upskilled themselves to keep up with shifting client demands.

Under the programme, TCS will offer three months' notice period pay to such employees, after which they will receive a severance package that ranges from six months to two years’ salary, depending on their tenure.

The lowest severance pay will be of six months, a source told the publication.

Additionally, employees who do not have a project or are on the ‘bench’ for over eight months are also affected. They will receive a simpler package — a notice period pay equivalent to three months.

“In keeping with the values of our company, those affected by our recent initiative to realign skills have been provided care and support as is due to them in each of the individual circumstances,” TCS said in a statement.

Employees who have 10-15 years of experience can expect a severance package equivalent to 1.5 years, the sources quoted by Moneycontrol said.

TCS will also provide support for career transition through outplacement services, and cover agency fees for three months or more in case of junior associates.

The report also mentioned that employees will also get early retirement options with all retirement benefits, including insurance. They will also get an additional severance package ranging from six months to two years’ salary.