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India Today
5 days ago
- Business
- India Today
Is PIP the new pink slip for IT companies? Experts on 'silent exit door' trend
A few days back, a Reddit post made the rounds. An anonymous user claiming to be a TCS employee shared that he had been placed under a Performance Improvement Plan (PIP). The post wasn't loud but quiet, desperate, and unsettling. "PIP has been initiated against me in TCS," he wrote. A two-year stint, a D-band performance rating, project change, and then a sudden drop in two weeks into a two-month PIP, he found himself unsure whether to resign or wait it had questions. Will he get his experience letter? Will he have to serve a three-month notice? If his manager gives a bad review, what happens next? Termination? Or worse, a silent push to resign?PIPs EVOLVE AS SUBTLE CORPORATE TOOLS BALANCING SUPPORT AND EXIT STRATEGIES This is not the first time such questions have surfaced, but this time, they stuck. The questions raised were poked at the soft underbelly of corporate processes that often get dressed up as policy but carry a different weight in IT industry doesn't announce its stress in press notes. It leaks out in exits, silent corridors, and cryptic HR calls. PIP, meant as a tool to improve, increasingly resembles a corridor to the exit."The real damage extends beyond individual careers -PIPs are creating a culture of perpetual anxiety where even high performers constantly fear being next, leading to risk-averse behaviour and innovation paralysis", says Ankur Agarwal, founder of the LHR just in TCS, but across sectors. And with voices like Geoffrey Hinton, the AI pioneer, warning about shifts in workforce dynamics, and leaders like Mark Zuckerberg hinting at efficiency-driven cuts, it is no longer a one-company only the tech giants but also the CEOs of small companies are issuing daily warnings about new developments in AI and how they impact the employability what is a PIP in the real sense, and how does it land on an employee's life? That's where experts come originated as a legitimate HR best practice in 1990s American MNCs, designed around the principle of "no surprises" original framework was genuinely developmental -if an employee was underperforming, they deserved 60-90 days of structured support with clear metrics, regular feedback, and additional resources like training or mentoring."The goal was actual improvement, and many employees successfully completed PIPs and thrived in their roles", says like Citigroup, GE saw it for the first time in the 2000 to 2010 eraadvertisementHowever, somewhere in the 2010s, PIPs began morphing from improvement tools into exit Aron, who leads Marching Sheep, doesn't mince her words. 'PIPs were never meant to be quiet exit strategies. But that's what they've become in many places,' she says. According to her, a true PIP begins before the paperwork. It begins with believes that sitting across a table won't help, but sitting on the same side of it and employees must become co-investigators, not adversaries. What's not working? How can it change? What can be done realistically? When these questions replace corporate template mailers, PIP becomes something else, a map, not a makes a point rarely spoken out loud: HR shouldn't just guard policies. It must protect people, culture, and the intent behind the policy."A PIP driven by frustration or target-driven exits is a misuse. Worse, it breaks trust, the one thing companies often say they value", says PIPs MIRROR PAST EXITS, TRUST IN PERFORMANCE SYSTEMS ERODESThere is another layer to the story, what happens when the culture around PIPs has already been poisoned by past actions? That's where Professor Kakoli Sen, IIM Sambalpur, HR veteran and academic voice, comes in. Her response is more clinical but no less is non-negotiable. Everyone is accountable," she says. But she's clear that accountability must come with clarity. Her point?A performance plan that comes as a surprise after a year of silence is not a plan, it's punishment. She adds, "The moment you say 'this is your last chance', the employee stops thinking about improvement. They start thinking about damage control."According to her, performance systems must start not at the end, but at regular checkpoints, monthly if possible, at least coaching, clarity of goals, and early warnings of drift. In most cases, this doesn't happen. Instead, after 12 months of ambiguity, employees are served a piped judgement with no roadmap."Culture matters here. If past cases have shown that PIP equals exit, then the message is internalised. And in that case, even a genuine attempt at performance correction will be met with suspicion, not cooperation", said Kakoli Sen while responding to a question to India Today gives an example: "If a person is moved from a prominent department to a back-end one, the organisation must ensure that the shift isn't perceived as a demotion." Because the perception becomes someone is marked as less useful, others follow suit. Motivation drops. Exit becomes what should be done? According to both Aron and Sen, the answer lies in intent and consistency."When combined with AI displacement and the talent pipeline destruction we discussed, PIPs represent the final nail in the coffin of employee development. Instead of investing in reskilling their workforce for an AI-augmented future, companies are using PIPs to quietly shed "legacy" talent while avoiding the honest effort needed to make them stay relevant", says SHOULD BE DONE IN REAL AS PER EXPERTSHR must build a system where the PIP is not a sudden thunderclap but a navigated storm."A Performance Improvement Plan should be a roadmap for growth, not a corporate exit strategy," says Mandeep Singh, Founder of FlickeZ."With clear goals, support, and coaching, a PIP can help unlock untapped potential. It must be seen as a reset, not a verdict. When used right, it becomes a catalyst for progress, not a signal to leave," he further adds. There must be training for managers, clarity on when PIPs are valid, proof of support extended before initiating one, and a strong record that PIP does not automatically mean short, transparency is the only way out. As Sen says, "You can't ask someone to perform under the fear of exit and expect peak delivery. It doesn't work in sports, it won't work in offices."The Reddit post ends without a resolution. Like most such stories, it fades into the noise. But it did what it was meant to do, it pulled the curtain in doing so, reminded us that what is called 'process' often leaves human lives in its are not paperwork. They're people-work. What companies do with this knowledge will define whether their workforces stay fearful or future-ready. And that choice, in the end, is theirs alone.- EndsMust Watch
Hindustan Times
28-07-2025
- Business
- Hindustan Times
TCS prepares job cuts as sector watches rise of AI
Tata Consultancy Services (TCS) will lay off approximately 12,000 employees this fiscal year, as India's biggest private employer adjusts to slowing growth and rising artificial intelligence (AI). This would imply that TCS, which ended the June quarter with 613,069 employees, will let go of 12,200 employees. (Bloomberg) The company attributed the decision, which will primarily impact senior and middle-level employees, partly to AI. 'TCS is on a journey to become a future-ready organization,' a company statement said on Sunday. 'This includes 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.' 'As part of this journey, we will also be releasing associates from the organization 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,' TCS said. This would imply that TCS, which ended the June quarter with 613,069 employees, will let go of 12,200 employees. Mint has learnt that TCS has already asked 100 employees in Bengaluru to go over the last fortnight. Also Read | Artificial intelligence behind 12,000 TCS job cuts? CEO K Krithivasan breaks silence The TCS job cuts come 30 months after the debut of ChatGPT cast a shadow over the business model of India's IT giants employing armies of coders. Just two weeks ago, India's third-largest IT services firm HCL Technologies Ltd mentioned potential layoffs as automation replaces work done by graduates. 'The impact of AI is eating into the people-heavy services model and forcing the large service providers such as TCS to rebalance their workforces to maintain their profit margins and stay price competitive in a cut-throat market where clients are demanding 20-30% price reductions on deals,' said Phil Fersht, chief executive of HFS Research. 'This trend will last for about a year as the leading providers focus on training junior talent to work with AI solutions, and are forced to move on people who will struggle to align with the new AI model we call services-as-software,' said Fersht. Meanwhile, fourth-largest Wipro Ltd is planning English competency tests for senior executives. Those faring poorly in the first-of-its-kind exercise may be put on performance improvement plans, according to three executives privy to the development, stoking fears of potential layoffs. 'Please note that it is mandatory to take the communication assessment and clear it,' read an internal email shared with Wipro employees on 19 July and accessed by Mint. 'Not taking the assessment will invite disciplinary action. Not clearing it in one attempt will result in a Performance Improvement Plan (PIP),' read Wipro's email. A PIP is often seen as a prelude to termination. Queries emailed to Wipro went unanswered. At HCL Tech, it is graduates who are in the crosshairs. 'Of course, we have had a good amount of people released due to the productivity improvements. Now, not all of them are readily redeployable, because the requirements for some of the entry-level or lower-end skills are being addressed through automation and other elements,' CEO C. Vijayakumar said on 14 July. 'The training and the redeployment time is longer. Some of them will be redeployed, but for others, it may not be possible. So, some amount of change in the industry is also kind of causing this,' said Vijayakumar. An email sent o HCL seeking comment went unanswered.
Mint
28-07-2025
- Business
- Mint
Three years on, AI is prompting IT services companies to cut workforce.
Tata Consultancy Services (TCS) will lay off approximately 12,000 employees this fiscal year, as India's biggest private employer adjusts to slowing growth and rising artificial intelligence (AI). The company attributed the decision, which will primarily impact senior and middle-level employees, partly to AI. "TCS is on a journey to become a future-ready organization," a company statement said on Sunday. "This includes 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. 'As part of this journey, we will also be releasing associates from the organization 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." This would imply that TCS, which ended the June quarter with 613,069 employees, will let go of 12,200 employees. Mint has learnt that TCS has already asked 100 employees in Bengaluru to go over the last fortnight. The TCS job cut comes 30 months after the debut of ChatGPT cast a shadow over the business model of India's IT giants, who employ armies of coders. Just two weeks ago, India's third-largest IT services HCL Technologies Ltd mentioned potential layoffs as automation replaces work done by graduates. 'The impact of AI is eating into the people-heavy services model and forcing the large service providers such as TCS to rebalance their workforces to maintain their profit margins and stay price competitive in a cut-throat market where clients are demanding 20-30% price reductions on deals," said Phil Fersht, chief executive of HFS Research. 'This trend will last for about a year as the leading providers focus on training junior talent to work with AI solutions, and are forced to move on people who will struggle to align with the new AI model we call services-as-software," said Fersht. Meanwhile, fourth-largest Wipro Ltd is planning English competency tests for senior executives. Employees faring poorly in the first-of-its-kind exercise may be put on performance improvement plans, according to three executives privy to the development, stoking fears of potential layoffs. 'Please note that it is mandatory to take the communication assessment and clear it," read an internal email shared with Wipro employees on 19 July and accessed by Mint. 'Not taking the assessment will invite disciplinary action. Not clearing it in one attempt will result in a Performance Improvement Plan (PIP)," read Wipro's email. A PIP is often seen as a prelude to termination. An email sent to Wipro seeking a comment went unanswered. At HCL Technologies, it is graduates who are in the crosshairs, unlike TCS and Wipro, where the heat is on middle and senior employees. "Of course, we have had a good amount of people released due to the productivity improvements. Now, not all of them are readily redeployable, because the requirements for some of the entry-level or lower-end skills are being addressed through automation and other elements," CEO C. Vijayakumar told analysts on 14 July. "The training and the redeployment time is longer. Some of them will be redeployed, but for others, it may not be possible. So, some amount of change in the industry is also kind of causing this," said Vijayakumar. HCL did not specify what percentage of workforce would be impacted. An email seeking comment went unanswered. The news of layoffs at TCS, first reported by Moneycontrol on Sunday, has also sparked debate about whether it is due to disruption from AI or the company's underperformance. "This round of layoffs is completely on account of slow growth," a TCS executive said on the condition of anonymity. 'Automation and GenAI cannot be displacing executives with 10 or more years of experience." TCS's under-performance under K. Krithivasan, who took over as CEO on 1 June, 2023, has caused anxiety among senior executives and a few analysts. In the June quarter, the company reported the slowest revenue growth among the top five, reporting a 0.59% sequential revenue decline to $7.42 billion. It's not a one-off either. Between 1 July 2023, and 30 June 2025, TCS achieved a 0.34% compounded quarterly dollar revenue growth, with its revenue increasing from $7.22 billion in the June quarter of 2023 to $7.42 billion in the June quarter of 2025. Infosys, in comparison, achieved a growth of 0.85% during this period, while HCL Technologies achieved 1.29%. For this reason, analysts at Kotak Institutional Equities believe TCS has lost its sheen compared to its peers in recent years. "TCS's relative resilience (ability to bounce back from a shock) versus peers has narrowed compared with the past. Relative competitive advantage has declined," its analysts Kawaljeet Saluja, Sathishkumar S., and Vamshi Krishna wrote on 11 April. 'TCS did not lead growth in the past two years, even when demand was driven by cost take-outs. Performance in developed markets in FY2025 has been poor with a decline in North America," the Kotak note added. Keith Bachman, analyst at BMO Capital Advisors, said AI-related productivity benefits could be meaningful in the 20-30% range over time. "Hence, all services providers will need to 1) gain share and/ or 2) enable and capture new addressable market opportunities to sustain growth. We remain concerned on impact to long-term growth from AI efficiency," wrote Bachman, who was among the first to cite GenAI's threat to IT services firms, on 23 July. Nearly a year after the launch of ChatGPT, Bachman had cautioned, 'First, all IT service providers have adopted new tools or end solutions that caused pressure on billable hours, to include Robotic Process Automation (RPA) and code repositories, amongst other areas. Further, each new tool or solution generates higher efficiency than the previous tools or solutions."
Irish Daily Mirror
16-07-2025
- Irish Daily Mirror
Teacher sacked on professional incompetence grounds loses unfair dismissal claim
A primary school teacher dismissed from her job on the grounds of professional incompetence has lost her claim for unfair dismissal. This follows Workplace Relations Commission (WRC) Adjudicator Emile Daly finding that teacher Ruth Lydon was not unfairly dismissed by the Board of Management (BOM) of St. Ciaran's National School, Fuerty, Co Roscommon after a marathon WRC process. Ms Daly made her ruling after 10 WRC hearing days held over a two-and-a-half-year period from October 17 2022 to May 12 of this year. Ms Lydon worked as a Special Education Teacher (SET) and was dismissed from her role by the school BOM in September 2021. St. Ciaran's National School is a 60-pupil, three-teacher school. Ms Lydon started teaching at the school in 2002 and in 2010 she became the main SET. In her evidence, school principal Rosita Murphy told the WRC that in October 2017, Ms Lydon had stopped communicating with the other staff and children's parents. Ms Murphy said that in a small school in a local community, the situation became untenable. Parents made complaints about discipline in Ms Lydon's class. Ms Murphy said that in November 2017, there was ongoing evidence that Ms Lydon was unable to discipline or manage her classrooms. Outlining disciplinary issues in the classroom in February 2018, Ms Murphy alleged that children were hiding in the toilet without Ms Lydon noticing and children were walking around the classroom during class. Ms Murphy further alleged that in early March 2018, more complaints were received from parents, books were thrown in the classroom and belongings of children were rifled by other children, which caused upset. Ms Murphy stated that misbehaviour was met with weak and inconsistent responses such as 'Don't do that again, good boy'. Ms Murphy said that the issues went beyond discipline where Ms Lydon would concentrate on one child while the rest of the class were all talking and misbehaving. Ms Murphy also alleged that children were raising their voices, on one occasion chanting 'fight, fight, fight,', which Ms Lydon failed to control and children were not doing their work during class. Ms Murphy alleged that on one occasion, a child used inappropriate language, using the words 'f**king bitch' and Ms Lydon reprimanded the child in front of the whole class, saying 'you can't use words like 'you f**king bitch''. Ms Murphy stated that Ms Lydon did not appear to think that there was anything wrong about her repeating these words in front of the children. A child's project was destroyed by another child and when Ms Murphy allegedly addressed this with Ms Lydon, she said it was not up to her to Pritt-stick. Ms Murphy alleged in March 2018, Ms Lydon took a day off 'to do timetables'. Ms Murphy initiated a competency process for Ms Lydon in January 2023 as part of the Circular Process and in May 2018, commenced a Performance Improvement Plan (PIP) around five areas - Classroom discipline; Standard of Teaching; Engagement with Pupils; Engagement with Parents and Staff and Planning of Classwork. As part of the PIP, Ms Murphy found that 'Under Poor Engagement with Pupils', Ms Murphy said in response to a question from a child, Ms Lydon said she was 'allowed wear slippers because she was an adult and could wear what she wants'. Ms Murphy found three of Ms Lydon's pupils sitting in the staff room, having asked her if they could go to the toilets. Ms Murphy found that there was no improvement during the PIP. Peadar O'Muiri was appointed by the Department of Education Chief Inspector to attend the school to assess Ms Lydon's professional competence as part of an external review in the Circular Process. Mr O'Muiri made three inspection visits and found that Ms Lydon was not performing at an acceptable level of professional competence in her role. In her findings, Ms Daly stated that given Mr O'Muiri's findings, that Ms Lydon's work was weak in all areas of competency that he assessed, it is hard to see how the Board Of Management (BOM) had any option other than to respond in the most serious way – which was to proceed to disciplinary action. A Department of Education circular 49/2018 provides a statutory mechanism for a school to suspend and/or dismiss a teacher. Ms Daly stated that 'there is a widely-held misconception that a teacher cannot be dismissed from their teaching post. But this is not so, a teacher may be dismissed if there are appropriate grounds to do so and if Circular 49/2018 is followed'. Ms Daly stated that given the length of time that the Circular Process took - three and a half years - she has little doubt that the impact that this process had on Ms Lydon, the school management, the children attending this small school and their parents "was difficult, attritional and damaging'. Ms Daly said that she was satisfied that, over time, Ms Lydon did not improve to the level that was required to provide an appropriate education to the children in her care. The school principal said there was ongoing evidence that the teacher was unable to discipline or manage her classrooms (Image: Colin Keegan, Collins Agency, Dublin) Ms Daly concluded that much time was spent on recording what Ms Lydon regarded to be unfair treatment and making bullying allegations against the School Principal, Ms Murphy, and insufficient time was spent actively listening to the critical feedback that she was receiving from Ms Murphy, her line manager, and reflecting on how she needed to improve the standard of her teaching. Ms Daly stated that if there is anything the BOM could be criticised for, it is for allowing the process to go on as long as it did. Ms Daly stated that she was satisfied that the School Principal, Ms Murphy, carried out her duties in accordance with the terms of Stage 1 of the Circular and until she correctly disengaged from the process having completed her Stage 2 report to the BOM. Ms Daly stated that Department Inspector Mr O'Muiri observed in his report a failure by Ms Lydon to engage with the children, inadequate support plans, inadequate targets or measured progress, disorganisation, not getting through the teaching that was required, not engaging with pupils, reading from text books while children became disengaged. Ms Daly stated that Mr O'Muiri's findings 'were stark' and Ms Lydon failed every competency that she was assessed on. Ms Daly stated that she was satisfied that the decision by the BOM to dismiss Ms Lydon by letter dated 18 March 2021 was within a band of reasonable responses to the uncontested findings of the Inspector. The BOM decision was upheld by a Disciplinary Appeals Panel (DAP) made up of an independent chair appointed by the Education Minister, a representative of a management body and a trade union representative. Ms Daly said that she was satisfied that the Circular Process was adhered to by both the school and the Department of Education. The WRC hearing heard that Ms Lydon has obtained other teaching work since her dismissal. At hearing, Ms Lydon said that she thought the PIP was a complete nonsense and Ms Murphy's report on the PIP was also a nonsense. Ms Lydon said that she considers the whole Circular process was prejudged by Ms Murphy and the BOM and that she didn't really stand a chance of remaining in her post from the point that it was started. In the case, the BOM was represented by Cathy McGready BL instructed by Lorcan Maule of Mason Hayes and Curran, while Ms Lydon was represented by Niamh Ni Leathlobhair BL and Mark O'Connell BL, instructed by Dalippe Lalloo, Lalloo & Co Solicitors. Subscribe to our newsletter for the latest news from the Irish Mirror direct to your inbox: Sign up here. The Irish Mirror's Crime Writers Michael O'Toole and Paul Healy are writing a new weekly newsletter called Crime Ireland. Click here to sign up and get it delivered to your inbox every week
Mint
05-07-2025
- Business
- Mint
Indian techie says he was sacked 4 days into PIP to deny gratuity: ‘Planned and Unethical
An Indian tech worker has alleged that his company terminated him just days before he became eligible for gratuity, sparking outrage online. In a viral Reddit post titled 'Refused to Resign, So They Terminated Me After 4.7 Years. Legal Advice Needed', the employee shared his ordeal. He claimed that after completing 4 years and 7 months with the company, he was suddenly accused of poor performance and asked to resign in June. When he refused to quit without a valid reason, the company allegedly placed him on a 10-day PIP (Performance Improvement Plan). He says he had already completed 80% of his sprint tasks and was ahead of schedule, yet the company terminated him on the fourth day of the PIP - before the review period ended. The employee believes this was a "completely unethical and planned" move to avoid paying gratuity. According to the Payment of Gratuity Act, 1972, gratuity cannot be denied for poor performance and can only be withheld for serious misconduct like theft or violence. Screengrab from the viral post. He says he was given only one month's severance pay, which he feels is unfair. Several Redditors supported him, calling this an 'abuse' of employee rights. One commenter advised him to 'complain to the local labour officer', while others pointed out that Indian courts 'scrutinise terminations timed just before gratuity eligibility' and might see this as a 'mala fide' act. Another user questioned the company's actions, writing, 'What company tries to save five months' gratuity by risking its reputation?'
