India’s largest IT services company, Tata Consultancy Services (TCS), is undergoing a major restructuring to realign its workforce with the evolving technology landscape. Driven by rapid advancements in artificial intelligence (AI), automation, and shifting client expectations, the company has begun large-scale layoffs — while offering generous severance packages and career transition support to affected employees.
Who Is Affected by the Layoffs?
The layoffs are primarily targeting employees whose skills have become obsolete or who have not upgraded themselves to meet new project requirements. Those who have been “on the bench” — without an active project — for more than eight months are also being asked to leave.
According to the National Information Technology Employees Senate (NITES), more than 2,500 employees in Pune alone were forced to resign, and the total number of layoffs could exceed 12,000, roughly 2% of TCS’s global workforce.
Severance Packages and Benefits
To reduce the impact, TCS is offering severance packages ranging from six months to two years of salary, depending on the employee’s tenure. All affected staff will receive a three-month notice period pay before the severance payout.
- Employees with 10–15 years of experience may get up to 1.5 years’ salary.
- Those without projects for extended periods will receive three months’ severance.
- Senior employees nearing retirement can opt for early retirement with full benefits, including insurance.
Support for Career Transition
Beyond financial support, TCS is also providing career transition assistance such as outplacement services and covering recruitment agency fees for up to three months for junior employees. The company says this approach is part of a proactive strategy to future-proof its workforce and align talent with emerging digital priorities.
Why TCS Is Restructuring Now
The layoffs reflect a broader industry shift where AI, automation, and cloud computing are reshaping traditional IT roles. As clients increasingly demand next-generation solutions, TCS is focusing on building a more agile and future-ready workforce.
While the move has drawn criticism from employee unions, TCS maintains that restructuring is essential to remain competitive in a rapidly evolving global tech landscape.
