Tata Consultancy Services (TCS), India’s largest IT services firm, is reportedly offering severance packages of up to two years’ salary to certain employees as part of its ongoing restructuring, driven by the growing focus on AI and changing client requirements, according to a Moneycontrol report. The severance packages are aimed at long-serving employees whose roles have become redundant due to these shifts.
This comes weeks after reports suggested TCS might cut around 2% of its workforce, amounting to over 12,000 jobs. Employee union NITES alleged that around 2,500 employees in Pune have been forced to resign, a claim made in a letter to the Maharashtra Chief Minister. TCS, however, stated that only a limited number of employees have been impacted and are being supported.
Sources said affected employees will receive three months’ notice pay, followed by a severance package ranging from six months to two years’ salary, based on experience. Those with 10–15 years at the company may receive up to 1.5 years’ pay. TCS will also provide career transition support, including outplacement services, agency fee coverage for junior staff, and early retirement benefits with insurance.
