Tata Consultancy Services (TCS), India’s largest IT firm, has begun a major workforce restructuring, offering severance packages of up to two years’ salary to laid-off employees whose skills no longer match evolving business demands.
The layoffs, affecting around 2% of its workforce—more than 12,000 staff—are part of the company’s move to adapt to rapid technological change, automation, and shifting client needs.
For impacted employees, the severance package varies by tenure. Those with over 15 years of service are eligible for the highest payouts, receiving up to two years’ salary. Employees with 10–15 years receive about 1.5 years’ salary, while the lowest severance is six months’ pay. All affected staff receive three months’ notice-period pay.
Employees who have been “on the bench”—unassigned to active projects for over eight months—are offered only the standard notice pay, without extended severance. Additional support includes career transition assistance and access to counselling as part of TCS’s “Cares” program.
TCS leadership describes this restructuring as a tough but necessary step for future readiness amid industry disruption, with a focus on agility, upskilling, and strategic realignment.
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