Tata Consultancy Services (TCS), the Indian multinational software exporter, is gearing to let go two per cent of its global workforce. With several reskilling and redeployment programmes already having started, the company has reportedly shared that it plans to let go employees who cannot be redeployed. That means about 12,000 employees who will be laid off with adequate benefits and support. Over this year, the company will see a significant number of those in the middle and senior ranks going.
K Krithivasan, CEO and MD, TCS told Money Control in an interview that the employees will not be sent off holus bolus, but the process will be carried out slowly over this year, giving employees a fair chance at redeployment. There will be personal interaction with the affected employees and they will be given relevant support through the transition along with fair benefits in accordance with the HR policy.
Why is TCS reducing headcount? The company is reportedly trying to keep up with changing technology, streamline its operations and make itself more ready for the future. It is reported that the company intends to invest in advanced technology, explore new markets and embrace artificial intelligence (AI) in a big way to better serve its clients and improve processes. However, the company has clarified that the layoffs are not an outcome of embracing AI. It is only letting go employees whose skills do not match its requirements. Simply put, the organisation is preparing to not just change the alignment of its workforce model but also establish next-gen processes and infrastructure.
The company has, however, assured that the impacted employees will be treated with utmost compassion and dignity; that the outgoing staff members will be provided with adequate benefits such as extended insurance cover and support. They will be helped with outplacement and be counseled too as they explore alternate jobs or opportunities.
