Is India’s largest technology company facing mass resignations? Reddit post has highlighted concerns among the young technology crowd being anxious over TCS’ new benching policy.
Several users on Reddit have warned that the policy could be a precursor to mass layoffs. To which a user replied, ‘Forced resignations have already started. Bloodbath.’
“This is the first step towards employment rationalisation based on utilisation. Brace for layoffs,” another user commented. A recent joiner, complained of pressure to join a support project outside their core skills, despite recent training in Java.
‘They will replace freshers job.’ said one, to which another commented, ‘that means no work for 1.5 years?’
‘So basically mass layoffs without the company taking the blame. Employees will be forced to ass-kiss their managers.’ stated a user.
What is TCS’ benching policy?
Tata Consultancy Services (TCS) has implemented a new policy that restricts the time an employee can remain without a billable project, commonly referred to as being “on the bench,” to just 35 business days per year. Effective from 12 June 2025, the policy mandates a minimum of 225 billable business days annually for all employees.
Failure to meet this benchmark may impact an individual’s compensation, career advancement, eligibility for overseas postings, and even job security. According to internal communications, “long periods of remaining unallocated shall adversely impact… continuity of employment with the organisation.”
During the bench period, employees must proactively seek new assignments by engaging with the Resource Management Group (RMG). Additionally, they are required to spend 4–6 hours daily on upskilling via internal platforms like iEvolve, Fresco Play, and VLS, as well as external services such as LinkedIn Learning.
Remote work during this period is generally disallowed, with employees expected to report to the office even while unallocated.
How many people could be impacted?
Though TCS has not disclosed the number of employees affected, industry estimates suggest that 15 to 18% of Indian IT employees are typically on the bench. With a global workforce of approximately 613,000, this could mean that over 90,000 TCS employees are vulnerable to the policy’s penalties.
Meanwhile, the Nascent Information Technology Employees Senate (NITES) reportedly has raised the issue with Union Labour Minister Mansukh Mandaviya, calling the policy “inhumane” and detrimental to mental health.
Despite the backlash, some employees have welcomed the move. Supporters argue that the policy will help streamline the workforce by targeting chronic underperformers or long-term benchers. “This may help TCS trimming some seriously underperforming resources,” one Reddit user remarked.
However, amid the concerns, TCS CEO K Krithivasan has downplayed the concerns, describing the new system as a “structured version of an existing expectation”. He emphasised that while employee preferences are taken into account, client needs ultimately drive project allocation. “Once we’ve made that investment, we work to ensure associates are deployed,” he said.
However, he declined to confirm whether salaries were being withheld for extended bench time.
Experts say the timing of the policy aligns with broader industry pressures. The IT sector is navigating slower demand, rising costs, and disruptions caused by artificial intelligence (AI) automating routine tasks.
Meanwhile, TCS isn’t alone. HCL Technologies also reported lower employee utilisation due to project delays and skill mismatches. With staff costs consuming nearly 60% of TCS’s revenue and utilisation already dipping, experts say that policies like this could soon become the norm across the IT industry.