TCS layoffs: Employees may get 6 months to 2 years’ severance package, says report

Tata Consultancy Services (TCS) is offering severance packages of up to two years’ salary to long-serving employees whose skills no longer align with company needs, Moneycontrol has reported.

The development comes as the IT giant reportedly restructures its workforce amid shifting client demand, automation, and a push to become more agile. In July, Moneycontrol said TCS planned to let go of around 2 percent of its workforce, or roughly 12,000 employees, over the next year.

According to the report, the restructuring mainly affects employees whose skills have become redundant or who have not upskilled to meet client requirements.

What the packages include:

Employees in this category are said to be entitled to three months’ notice pay, followed by severance ranging from six months to two years’ salary, depending on tenure. The highest payouts reportedly go to staff with over 15 years of service.

For “bench” employees who have been unallocated for over eight months, the package is limited to three months’ notice pay. Employees with 10–15 years of service in this group may receive around 1.5 years’ severance, sources told Moneycontrol.

The report adds that TCS is also offering early retirement options, career transition support via outplacement services, and access to mental health programs under “TCS Cares.”

CEO K Krithivasan had earlier described the restructuring as “one of the toughest decisions,” largely impacting middle and senior-level employees.

BT could not independently verify these claims. The copy will be updated if TCS issues a response.