TCS Announces Minimum 6-Month Severance Pay for Laid-Off Employees
TCS Announces Minimum 6-Month Severance Pay for Laid-Off Employees
Thousands of employees at Tata Consultancy Services (TCS) are facing a major transition as the IT giant rolls out a structured severance package tied to its broader strategy of reshaping its workforce. The company is focusing more on cutting-edge domains like artificial intelligence, data science, and cybersecurity, while phasing out roles that no longer align with its evolving business needs.
Roughly 12,000 employees—largely mid- to senior-level professionals—are being impacted by this strategic realignment. The move has stirred significant discussion online, particularly around the criteria used to determine eligibility for severance and the varying compensation based on tenure.
TCS has put forth a “tiered exit policy” that ensures a minimum of six months’ salary as severance pay. Employees whose roles were deemed obsolete due to lack of upskilling or redundancy were offered a notice period payout of three months, followed by severance ranging from six months to one year of salary, depending on their years of service.
Those with longer tenures received more substantial support. Individuals with between 10 and 15 years at the company were offered the equivalent of 1.5 years’ salary, while those crossing the 15-year mark were given two years’ pay. The company clarified that “six months’ compensation is the floor for all affected employees.”
To ease the transition for those exiting, TCS also agreed to foot the bill for outplacement agency services for up to three months, with extended support provided to junior-level associates. As part of its commitment to employee wellbeing, the firm is continuing its “TCS Cares” mental health initiative, offering complimentary access to therapists for short-to-mid-term counselling.
Employees who had been without a project assignment—commonly referred to as being on the bench—for over eight months received the standard three-month notice period salary but did not qualify for the enhanced severance package unless additional criteria were met.
For staff nearing the end of their careers, the company introduced an early retirement option. This package includes full access to all retirement benefits and insurance coverage, along with additional severance payments ranging from six months to two years of salary based on individual tenure.
While the severance rollout has sparked debate across social platforms, TCS appears focused on balancing compassion with strategic realignment. A senior executive reportedly mentioned that “the aim is to treat people fairly while reshaping the workforce to meet future demands.”
