- TCS is experiencing a 16% senior-level attrition, up from 4-5% historically
- Around 12,000 employees, 2% of global staff, impacted by workforce reduction
- Senior leaders reportedly received less than 10% of variable pay in two years
Tata Consultancy Services (TCS) is facing an unusually high churn at senior levels as organisational restructuring, layoffs and compensation concerns strain employee sentiment, according to a Mint report. The country's largest IT services exporter has seen exits from its top ranks surge to around 16%, markedly higher than its historical annual attrition rate of 4–5% recorded since its 2004 stock market listing, the report said, citing executives familiar with the matter. Those leaving include long-serving professionals such as principal consultants, vice presidents and senior vice presidents.
The senior-level departures come at a time when TCS is undergoing its biggest workforce reduction to date. About 12,000 employees, roughly 2% of its global headcount, have been impacted as the IT services outsourcing industry adjusts to the growing influence of artificial intelligence, Mint reported.
The company has also been reworking its organisational structure and gradually moving away from its long-standing image as a lifetime employer.
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Executives quoted in the report said trust within the organisation has been shaken, particularly as compensation has emerged as a sticking point. Senior leaders are said to have received less than 10% of their variable pay over the past two years, prompting many to consider opportunities elsewhere, as per the report.
Attrition trends across the sector show a narrowing gap among peers. TCS reported a 13.5% attrition rate in the December quarter, broadly in line with rivals including Cognizant, Infosys and HCL Technologies, Mint said.
The turbulence comes amid other business pressures. TCS has lost key client contracts and faces slowing growth, reporting revenue of $22.4 billion for the first nine months of the fiscal year 2026. The company may struggle to match its performance from the previous year, while its shares have recently fallen to a six-year low, the report added.
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