TCS Provides Care and Support to Employees Affected by Workforce Restructuring Amid IT Sector Challenges

In July, TCS announced it was retraining and redeploying staff as it enters new markets.

New Delhi:

Several months following Tata Consultancy Services' announcement to reduce its workforce by 2 percent in its 2026 financial year, the company has affirmed it is providing "care and support" to employees affected by the 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 stated to NDTV Profit.

Previously, various media outlets reported that the firm, India's largest IT services provider, was offering severance packages amounting to up to two years' salary to long-serving employees whose skills no longer aligned with the company's requirements.

The Indian IT sector is currently experiencing subdued growth, with industry guidance and recent results indicating a muted outlook for the 2026 financial year.

Key indicators reveal that the sector has encountered challenges due to global macroeconomic uncertainty, client cost optimization, and delayed decision-making.

Read | Tata Consultancy Services, India's Largest IT Services Provider, To Cut 12,000 Jobs

In July, TCS Chief Executive K Krithivasan noted that there were delays in client decision-making and project initiations.

On Wednesday, Nascent Information Technology Employees Senate (NITES) - a forum representing IT sector employees - alleged that TCS has forced approximately 2,500 employees in Pune to resign from their positions.

The IT employees' body, in a letter to Maharashtra Chief Minister Devendra Fadnavis, requested timely intervention to safeguard the interests of the affected employees.

TCS, however, dismissed the claim and clarified that only a limited number of employees have been impacted by its recent initiative to realign skills.

"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," the company stated.

"Those who have been affected have been provided due care and severance, as is due to them in each of the individual circumstances."

In July, the company announced it was retraining and redeploying staff as it enters new markets, invests in new technology and implements AI, but approximately 12,200 jobs will be eliminated as part of the process.

"This transition is being planned with due care to ensure there is no impact on service delivery to our clients," the company added.