TCS To Cut 12,000 Jobs, Some Staff Offered 2 Year Severance Pay

3rd October 2025 at 5:24 PM

1 minute read

Tata Consultancy Services (TCS) has begun reducing its workforce, offering severance packages of up to two years’ salary to employees whose skills no longer match the company’s evolving business needs.

Mumbai : Tata Consultancy Services (TCS) has begun reducing its workforce, offering severance packages of up to two years’ salary to employees whose skills no longer match the company’s evolving business needs. According to the report, the restructuring will affect around 2 per cent of TCS’s workforce globally, which translates to more than 12,000 employees over the next year.

Employees whose roles are affected will receive a notice period pay of three months, followed by a severance package ranging from six months to two years’ salary, depending on their tenure. The lowest severance pay in this category is 6 months. Those who have been unallocated or on the bench” for more than eight months without finding a suitable role will get a simpler package consisting of the notice period pay only.

In keeping with the values of our company, those affected by our recent initiative to realign skills have been provided care and support as is due to them in each of the individual circumstances. Employees with over 15 years of service whose skills have become redundant can receive up to two years’ salary. TCS is also providing support for career transitions, including outplacement services and coverage of agency fees for three months, while in select cases, employees may receive access to mental health support through the company’s “TCS Cares” program.

TCS CEO K Krithivasan had previously described the restructuring as “one of the toughest decisions” of his career. The report indicates that most workforce changes were implemented in August and September, with only a few employees still being evaluated for alternative roles within the company.