The latest from the ongoing uncertainties with regards to TCS‘ work force management. The Tata Consultancy Services (TCS), is offering severance packages of up to two years’ salary to long-serving employees, as per a report by Moneycontrol. The move comes as the IT major restructured its workforce in response to shifting demand and rising automation. All eyes are on the Q2 announcements on October 9.
Not all bench employees being laid off
As per the Moneycontrol report, not all bench employees are being laid off; only those unallocated for over 8 months without suitable roles are affected. TCS’ new 35-day bench policy took effect on June 12 and ended on July 17. Under this policy, employees were permitted a maximum of 35 business days per year without a project assignment. Exceeding this limit could result in demotion or termination.
TCS cut 2% of workforce in restructuring push
Earlier this year, TCS announced that it would let go of around 2 percent of its workforce — more than 12,000 employees — over the next year. On Wednesday, NITES also raised the issue of TCS allegedly forcing around 2,500 employees in Pune to resign in a letter to the Maharashtra Chief Minister. However, as per media reports, and buzz across the industry, TCS stated that only a limited number of employees have been affected by its recent steps to realign skills within the organisation.
Notice period and severance packages for affected employees
According to Moneycontrol, employees who will be laid off are expected to receive a notice period pay of three months, followed by severance ranging from six months to two years salary, depending on their tenure. “The lowest severance pay in this category is six months,” the Moneycontrol report stated.
Employees who have been unallocated, or “on the bench”, for over eight months without securing a role will be offered a simpler exit package that includes three months of notice period pay.
Long-serving staff to get up to 2 years’ salary
Employees with more than 15 years of service are eligible for the highest payout, which can go up to two years’ salary. Those with 10–15 years of service are entitled to around 1.5 years of severance pay, Moneycontrol reported.
Apart from financial support, TCS is also offering career transition assistance through outplacement services, covering agency fees for three months or more in some cases, according to Moneycontrol.
The IT major has also extended early retirement options for employees close to retirement age, allowing them access to all retirement benefits, including insurance, along with an additional severance package of six months to two years’ salary depending on tenure, the report by Moneycontrol noted.
TCS delays onboarding of 650 lateral hires
TCS also delayed the onboarding of 650 lateral hires this year, according to media reports. However, The Times of India reported on September 27 that the company has started sending onboarding communications, with some candidates receiving joining dates in October after a delay of nearly three months.
TCS to announce Q2 FY26 earnings on October 9
TCS is going to announce its Q2FY26 earnings on October 9, and the management will address the media at 5:30 PM. In the previous quarter, the company’s total headcount increased to 613,069 from 606,998 in the same quarter of the previous fiscal year. Tata Consultancy Services incurred total expenses of Rs 48,118 crore in Q1 FY26, with employee benefit expenses accounting for 78.38% of the total. TCS reported a total revenue of Rs 37,715 crore in Q1 FY26.