Key Takeaways
- TCS confirms no fixed layoff targets, emphasizes careful evaluation process
- Company spent Rs 1,135 crore on severance payments in Q2 FY25
- Mid and senior-level employees most affected by workforce restructuring
Tata Consultancy Services (TCS) has clarified it has no predetermined layoff targets despite reducing its workforce by 20,000 employees in the July-September quarter. The IT giant emphasized that workforce decisions will be based on continuous evaluation rather than fixed numbers.
No Fixed Targets for Workforce Reduction
TCS Chief Human Resources Officer Sudeep Kunnumal stated during the company’s September quarter earnings call that the process remains flexible. “We don’t have a target. We will continue to evaluate everyone after all the investment in learning and development that we’ve done,” he explained.
The company’s recent workforce decline resulted from both voluntary and involuntary attrition. Kunnumal asserted that the significant headcount reduction doesn’t indicate a planned exercise but rather reflects ongoing evaluation.
Support for Departing Employees
TCS is taking a careful approach when releasing mid and senior-level employees who cannot find suitable roles. The company provides comprehensive support including benefits, counselling, and outplacement assistance.
“We are providing benefits, counselling, and outplacement support,” Kunnumal confirmed, adding that severance packages exceed industry benchmarks. During the September quarter alone, TCS allocated Rs 1,135 crore toward severance payments.
Workforce Statistics and Trends
TCS had previously announced plans to reduce its global workforce by approximately 12,000 employees (2%) this year. Nearly half this number has already exited the organization.
As of September-end, TCS’s total headcount stood at 593,314. The attrition rate for Q2 FY25 reached 13.3%, higher than the 12.3% recorded a year earlier but lower than the previous quarter’s 13.8%.
Technology Shifts and Financial Performance
Kunnumal acknowledged that technology shifts and automation are reshaping workforce structures. Mid and senior-level employees struggling to secure appropriate assignments have been most affected, with benched staff facing increased scrutiny.
Despite these challenges, Kunnumal emphasized that the company manages workforce releases “with a lot of care.”
Financially, TCS reported modest Q2 results with net profit growing 1.4% year-on-year to Rs 12,075 crore and operational revenue increasing 2.4% to Rs 65,799 crore. This performance reflects global uncertainty and AI-driven disruption in IT services .
