Tata Consultancy Services Workforce Restructuring

Tata Consultancy Services (TCS), India's largest IT services company, is undertaking a major workforce restructuring, offering severance packages of up to two years' salary to long-serving employees whose skills no longer match evolving client requirements. This initiative, described by CEO K. Krithivasan as a tough decision, aims to make Tata Consultancy Services more agile in response to increased automation and changing client demands. Approximately 12,000 employees, or 2% of its workforce, are expected to be affected. The severance packages vary based on tenure, with employees having over 15 years of service qualifying for the highest payouts. Tata Consultancy Services is also providing career transition assistance, including outplacement services and mental health support through its 'Cares' programme. While the company states that only a limited number of employees are affected by skill realignment, the Nascent Information Technology Employees Senate (NITES) has alleged that Tata Consultancy Services forced around 2,500 employees in Pune to resign.