Hyderabad: Tata Consultancy Services (TCS) has commenced the layoff process for approximately 12,000 employees, following its July announcement. The company cited the increased adoption of Artificial Intelligence (AI) and automation as the primary reason for workforce reductions, aiming to realign resources with evolving business needs.
TCS has outlined compensation packages based on employee tenure. Long-serving staff are eligible for up to two years’ salary as severance, along with a three-month notice period salary. Employees with 10–15 years of service will receive around 1.5 years’ salary, while those exceeding 15 years are entitled to a maximum of two years. Bench employees with over eight months of inactivity will receive a simpler package, covering only notice period pay.
In addition to financial compensation, TCS is providing outplacement support and mental health assistance through its TCS Cares program. Employees approaching retirement are offered early retirement options with severance packages ranging from six months to two years, along with continued insurance benefits. These measures aim to ensure a smooth transition for affected staff while supporting their well-being and future career prospects.