TCS Workforce Shake-Up: Long-Serving Employees To Receive Generous Severance, Says Report

New Delhi: Tata Consultancy Services (TCS), India's largest IT services company, is offering generous severance packages of up to two years' salary to employees whose skills no longer match the company's requirements. This move comes as TCS carries out one of its largest workforce realignments in recent years. The move comes as TCS restructures its workforce in response to changing client demands, increased automation, and efforts to become more agile. In July, reports indicated that the company plans to reduce about 2 per cent of its workforce -- roughly 12,000 employees -- over the coming year. Under the current programme, affected employees will receive a three-month notice period pay, followed by severance ranging from six months to two years' salary, based on their years of service. According to a Moneycontrol report, "the lowest severance pay in this category is six months." Employees who have been unallocated -- or "on the bench" -- for over eight months without a project are offered a simpler package that includes only the three-month notice pay. Employees with 10-15 years of service: Eligible for around 1.5 years' salary as severance. Employees with over 15 years of service: Qualify for the highest severance, which can go up to two years' pay. Bench employees: Only those without active roles for over eight months are being let go, receiving a simpler package. TCS is providing career transition assistance, including outplacement services with agency fees covered for at least three months. For some junior associates, this support period may be extended. In certain cases, employees can also access counselling and mental health therapy through TCS's 'Cares' programme.