TCS to Cut Jobs, Offers Severance Packages of Up to 2 Years’ Pay

Tata Consultancy Services (TCS) is cutting jobs as part of a restructuring plan. The company announced in July that about 2% of its workforce will be let go, which is more than 12,000 employees out of 6.13 lakh staff. This is the second time TCS has carried out large-scale layoffs, the first being in 2012 when 2,500 people were affected.

Employees Impacted

The exercise affects staff whose skills are no longer in demand or who have not adapted to client requirements. Middle and senior-level employees form a significant part of this group. Only a small number of cases are still under review, with redeployment options being explored.

Severance Packages

Employees will receive three months of notice period pay. Beyond that, severance depends on tenure. The lowest payout is six months’ salary, while employees with longer service can get up to two years’ salary.

• 10–15 years of service: around 1.5 years of severance
• More than 15 years of service: up to 2 years of salary
• Bench employees unassigned for over 8 months: three months’ notice pay

Early Retirement Scheme

Employees nearing retirement are being given the choice of early retirement. They will receive regular retirement benefits such as insurance, along with an additional severance package of six months to two years, depending on service length.

Support Provided

The company is also arranging outplacement services for a minimum of three months, in some cases longer, for junior staff. Select employees are also being given access to counselling and therapy through the internal “TCS Cares” program.

Implementation Timeline

The majority of job cuts took place during August and September 2025. Remaining employees without active roles are being reviewed for possible redeployment under the Resource Management Group.

Read more: Tata Group to Manufacture Airbus H125 Helicopters in Karnataka, First Delivery by 2027!

TCS Share Price 

As of 3 October 2025, 10:20 am, Tata Consultancy Services (TCS) share price was trading at ₹2,900.10, down ₹14.10 or 0.48% from the previous close.

Conclusion

TCS is offering severance packages of up to two years’ salary as it reduces staff and realigns its workforce with changing business and technology requirements.

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