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TCS is supporting employees affected by a recent skills realignment initiative
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Reports suggest generous severance packages to long-serving employees
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TCS denies mass resignations, stating only a limited number were affected
Tata Consultancy Services Ltd. said on Thursday it is providing "care and support" to employees impacted by a restructuring.
"In keeping with the values of our company, those affected by our recent initiative to realign skills have been provided care and support that is due to them in each of the individual circumstances," the company said in a statement to NDTV Profit.
Certain media reports claimed TCS is offering severance packages of up to two years' salary to long-serving employees whose skills no longer align with company needs.
India's IT services sector has been significantly disrupted by artificial intelligence and automation, making many legacy roles and tasks redundant.
The Nascent Information Technology Employees Senate (NITES), a forum representing IT sector employees, has alleged that the IT giant has forced around 2,500 employees to resign.
The staff members who were allegedly forced to resign were based in Pune, according to the letter written by NITES to Maharashtra Chief Minister Devendra Fadnavis.
TCS denied the accusation on Wednesday stating that only some of employees have been affected by its recent initiative to realign skills in the organisation.
NITES President Harpreet Singh Saluja, in the letter to Fadnavis, sought timely intervention to protect the interests of the affected employees.
Saluja said based on NITES representation, the Union Labour Ministry has directed the Maharashtra labour secretary to take necessary action in the matter.
When contacted, TCS said, "The misinformation shared here is inaccurate and purposefully mischievous. Only a limited number of employees have been affected by our recent initiative to realign skills in our organisation."
Layoffs In TCS
Earlier in July, TCS announced that it will lay off about 12,000, or 2%, of its global workforce this year, with the majority of those impacted belonging to middle and senior grades. Around 12,261 employees were impacted by this move. As of June 30, 2025, the TCS workforce stood at 6,13,069, a net addition of 5,000.
The move is part of the company's broader strategy to become a 'future-ready organisation', focusing on investments in technology, AI deployment, market expansion, and workforce realignment, TCS said in a statement.
"Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2% of our global workforce, primarily in the middle and the senior grades, over the course of the year," it said. TCS said that they will provide appropriate benefits, outplacement, counselling, and support to the impacted employees.
The move comes at a time when India's top IT services companies have delivered single-digit revenue growth in Q1FY26, capping off a somewhat sobering June quarter as macroeconomic instability and geopolitical tensions weighed on global tech demand and delayed client decision-making.
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