Tata Consultancy Services (TCS), India’s largest IT services company, has begun a major workforce restructuring initiative as it aligns its business with next-generation technologies like AI, cloud computing, and data analytics. According to multiple reports, the company is offering severance pay of up to two years’ salary to mid- and senior-level employees affected by the layoffs.
TCS Layoffs 2025: 12,000 Jobs at Risk
As part of the restructuring, TCS plans to reduce its total workforce by about 2%, impacting nearly 12,000 employees. The move is aimed at ensuring the organization remains agile, efficient, and future-ready in a rapidly evolving tech landscape.
The layoffs are not uniform across departments but are focused on specific roles and seniority levels, particularly targeting employees whose skills have not evolved in line with client and market demands.
TCS Severance Packages: Up to 2 Years’ Salary Based on Tenure
Affected employees are being offered generous severance benefits, depending on their length of service with the company. As reported by MoneyControl:
- All impacted employees will receive a three-month notice period pay.
- Severance pay will range from six months to two years’ salary based on tenure.
- Employees with 10–15 years of service are reportedly receiving 1.5 years’ salary.
- Those with over 15 years in TCS may receive between 1.5 and 2 years’ salary.
However, employees who have been on the bench (unassigned to client projects) for over eight months will only receive the standard three-month notice pay, without additional severance.
Most of the layoffs and internal adjustments were carried out between August and September 2025, though a few cases are still being reviewed. The company’s Resource Management Group (RMG) is attempting to reassign some affected employees to available roles internally.
Early Retirement Option with Full Benefits
TCS is also offering early retirement packages to employees nearing retirement age. These include:
- Full retirement benefits
- Continued insurance coverage
- Additional severance pay based on years of service
To help employees cope with the emotional and financial impact of the layoffs, TCS has extended support through its “TCS Cares” program, offering counseling, therapy sessions, and mental wellness support for affected employees and their families.
Industry-Wide Restructuring: A Shift Toward Digital
This move by TCS reflects a broader industry trend among top Indian IT firms like Infosys, Wipro, and HCLTech, which are also undergoing similar workforce transformations. As the demand for AI, automation, and cloud-based solutions grows, companies are emphasizing upskilling and reskilling to stay relevant.
TCS’s restructuring underscores a key message to the industry — employees must continuously evolve with emerging technologies to remain future-ready.
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