TCS to cut 2% of workforce, affecting around 12,000 jobs
'TCS is on a journey to become a future-ready organisation… As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2% of our global workforce, primarily in the middle and the senior grades, over the course of the year,' the IT giant said in a statement to ET. 'This transition is being planned with due care to ensure there is no impact on service delivery to our clients… We understand that this is a challenging time for our colleagues likely to be affected. We thank them for their service and we will be making all efforts to provide appropriate benefits, outplacement, counselling, and support as they transition to new opportunities,' the company added.The affected employees will receive payments for their notice periods along with an additional severance package. TCS will also look to extend insurance benefits and offer outplacement opportunities for the impacted employees.The layoff decision comes days after several TCS employees filed legal complaints against the company's recently tweaked employee bench policy, which allows employees only 35 annual days without being deployed on a project and to maintain at least 225 billable days annually.India's software services companies, with a cumulative revenue of over $283 billion, are among the largest private sector employers, with TCS being the largest.On Friday, ET reported that job additions at the top six IT majors saw a decline of over 72% with a mere 3,847 employee additions in the April-June quarter, a drop from 13,935 people who were hired by the six firms in the March quarter.TCS also stated it is making strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure and realigning our workforce model.Towards this, a number of reskilling and redeployment initiatives have been underway. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. From near bankruptcy to blockbuster drug: How Khorakiwala turned around Wockhardt
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Trump's tariffs — starting with steel, then cars, and now a sweeping 15 per cent rate — have disrupted that status quo. With inputs from agencies
