Tata Consultancy Services (TCS) is offering severance packages of up to two years’ salary to long-serving employees as part of a workforce restructuring programme, Moneycontrol reported.
In July, TCS announced it would reduce about 2 percent of its workforce — more than 12,000 employees — over the next year. The company said the step was part of an initiative to “realign skills” to meet changing client demand and technology disruptions.
The reductions primarily affect employees whose skills have become redundant or who have not reskilled to align with evolving requirements.
Sources told Moneycontrol that affected staff will receive three months of notice period pay and severance ranging from six months to two years’ salary, depending on their tenure with the company. Employees with over 15 years of service are eligible for the maximum payout of two years’ salary. Those with 10–15 years of service may receive about 1.5 years of pay, while the minimum package offered is six months.
Employees who have been “on the bench” — unallocated for more than eight months without a new role — are eligible for a simpler package comprising three months of notice pay, the report said.
TCS Chief Executive K Krithivasan said in July that the decision to restructure was “one of the toughest” he had taken. He noted that the changes would primarily affect middle and senior-level employees.
Most of the workforce adjustments were carried out in August and September, with only isolated cases still being evaluated. In such cases, employees without active roles are being considered for redeployment through the company’s Resource Management Group.
The company is also offering support services beyond severance. According to Moneycontrol, TCS is covering outplacement agency fees for up to three months, and sometimes longer for junior associates, to help affected employees find new roles.
In select cases, TCS is also providing access to mental health resources through its “TCS Cares” programme, which funds therapy sessions, the report said.
Sources told Moneycontrol that TCS is extending early retirement options for employees approaching retirement age. These employees can access full retirement benefits, including insurance, in addition to severance pay ranging from six months to two years’ salary depending on tenure.
In a statement, the company said: “In keeping with the values of our company, those affected by our recent initiative to realign skills have been provided care and support as is due to them in each of the individual circumstances.”
TCS, which employs more than 600,000 staff worldwide, is India’s largest IT services exporter. The restructuring comes at a time when IT services companies are adapting to client demand shifts, automation and the growing adoption of artificial intelligence.