TCS offers up to 2-year severance pay amid workforce restructuring
What's the story
Tata Consultancy Services (TCS), one of India's largest IT companies, is offering severance packages of up to two years' salary. The move comes as part of a workforce restructuring process amid changing client demands and increased automation. The company had previously announced plans to lay off 2% of its workforce, or over 12,000 employees, over the next year.
Package details
Severance packages for employees with redundant skills
The severance packages are mainly for employees whose skills have become redundant or who haven't upskilled to meet evolving client needs. The package includes a notice period pay of three months, and a severance package ranging from six months to two years' salary, depending on the employee's tenure. For those unallocated or "on the bench" for over eight months without finding a suitable role, TCS offers a simpler package with just the notice period pay equivalent to three months.
Additional support
Outplacement services offered to help employees transition
Along with the severance packages, TCS is also providing outplacement services to help employees transition into new careers. This includes covering agency fees for three months or more, especially for junior associates. In some cases, the company also provides access to mental health support or therapists through its "TCS Cares" program.
Retirement options
Early retirement options for eligible employees
TCS is also offering early retirement options to eligible employees, giving them access to all retirement benefits, including insurance. The additional severance package ranges from six months to two years' salary, depending on the employee's tenure. Most of the workforce adjustments were completed in August and September amid widespread resentment. Now, only isolated cases of employees without a role are still being evaluated with options to move into the Resource Management Group (RMG) for other roles across the company.