TCS to layoff 12,000 employees: What we know so far about the mass cull
The announcement follows suspense on salary hikes after a tepid June quarter, anxiety among staff over a new benching policy, and employee bodies decrying delays in lateral hiring.
Here's a detailed look at all the issues:
TCS layoffs: All you need to know The massive layoffs will primarily affect employees in middle and senior roles. Employees on the bench for a long time may also face the heat.
The layoffs will happen across TCS's global workforce and will not be focused on any specific geography or industry domain. The IT major will complete the job cuts over the next three quarters of FY26.
Job cuts for agility, not because of AI: CEO In a statement on the job cuts, TCS said it is on a journey to become a 'future-ready organisation', which calls for realigning the workforce model, among other things."Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible," the company said.
Talking to Moneycontrol, TCS chief executive K Krithivasan emphasised that the retrenchment is not a case of AI taking jobs, but rather a skill mismatch issue. The company has been training employees in AI skills, but senior-level staff may not be able to use entry-level skills, causing issues with their deployment, the TCS CEO stated.
What TCS is offering affected employees
The laid-off employees will receive payments for their notice periods, along with a severance package, TCS said. The company said it is also looking to extend insurance benefits and other outplacement opportunities for the impacted employees. In its statement, the company said it will 'provide appropriate benefits, outplacement, counselling, and support' to employees 'as they transition to new opportunities.'CEO Krithivasan told Moneycontrol that the company will not rush the process. It will first talk to the employees identified for layoffs, and try to deploy them. If unable to do so, the fired staff will be given benefits as per the HR policy, he said.
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