TCS to Offer Up to 2 Years’ Severance Pay as Part of Major Workforce Restructuring Plan

As the Indian IT giant reduces people in response to changing customer demands and increasing automation, IT juggernaut Tata Consultancy Services (TCS) is providing severance compensation of up to two years’ salary to long-serving employees whose skills no longer match corporate needs.

In an effort to become more flexible and future-ready in the face of swift technological advancements, Moneycontrol announced in July that it will lay off 2% of its personnel, or around 12,000 workers, over the course of the following year.

Restructuring Plan Aims to Affect Less Skilled Employee

According to a number of media sources, the restructuring mostly impacts workers whose skills have become outdated or who haven’t upgraded to suit changing customer needs. Employees in this category are eligible for a three-month notice period under the programme, followed by a severance compensation that, depending on duration, can range from six months to two years’ salary.

According to a media report, six months is the lowest amount of severance pay in this category. Those who have been looking for a job for more than eight months are given a more basic package that includes three months’ worth of notice pay.

According to the company’s statement, individuals impacted by our recent drive to realign talents have received the care and assistance that is appropriate for them in each of the unique circumstances, in accordance with our company’s values.

TCS Also Offering Career Transition

Additionally, the exporter of IT services offers outplacement services to assist with career transitions, paying agency fees for three months, and occasionally longer for junior associates. According to insiders, the business occasionally also provides funding for access to therapists or mental health help through its “TCS Cares” programme.

Additionally, according to sources, the corporation is offering early retirement choices to workers whose retirement is due. These workers will have access to all retirement benefits, including insurance, as well as extra severance compensation that will vary in value from six months to two years’ salary, depending on their employment.

According to reports, the majority of the labour modifications were finished in August and September amid considerable discontent. Employees without roles are still only being reviewed in isolated circumstances; they have the opportunity to join the Resource Management Group (RMG) to investigate roles throughout the organisation.