Information technology (IT) giant Tata Consultancy Services (TCS) is constantly in the news. The company is now making headlines for offering severance packages of up to two years’ salary to long-serving employees whose skills no longer match its evolving needs, as the Indian IT powerhouse adjusts its workforce in response to changing client demands and increasing automation.
According to a Moneycontrol report citing sources, the TCS layoffs as part of the company’s restructuring will mainly impact employees whose skills have become redundant or who have not upskilled to meet changing client demands. Under the program, affected employees will receive pay for a three-month notice period, followed by a severance package ranging from six months to two years’ salary, depending on their tenure. Sources told the publication that the minimum severance package will be six months’ pay.
Additionally, employees who have been without a project or on the ‘bench’ for more than eight months will also be impacted. They will receive a straightforward package consisting of notice pay equal to three months’ salary. Mid-level employees with 10–15 years of experience may receive severance of up to 1.5 years’ salary. Employees with over 15 years of service will also benefit from career support via outplacement services, with TCS covering agency fees for three months.
In certain cases, the company may provide mental health support through its TCS Cares programme. The company is also providing voluntary retirement schemes for employees approaching retirement, which include insurance coverage and severance packages ranging from six months to two years’ salary.
