Tata Consultancy Services (TCS), India’s largest IT services company, has rolled out severance packages of up to two years’ salary as part of a sweeping workforce restructuring, according to media reports.
The exercise is aimed at streamlining operations and realigning talent with evolving business priorities. Severance pay will vary by tenure: six months’ salary for shorter stints, around 1.5 years’ pay for employees with 10–15 years of service, and up to two years’ salary for those with over 15 years at the company. All affected employees are assured a minimum of three months’ notice pay.
However, staff who have remained “on the bench,” or unassigned, for more than eight months may receive only standard notice pay without additional benefits.
Beyond financial compensation, TCS has also rolled out outplacement services, mental health support under its “TCS Cares” initiative, and voluntary early retirement options with full benefits.
CEO K Krithivasan described the decision as “one of the toughest” in the company’s history, noting that mid- and senior-level employees have been most impacted. The bulk of role adjustments were carried out in August and September, with a few cases still under review.
For many employees, the packages bring both certainty and closure in a period of change. For TCS, the move represents a difficult balancing act involving letting go of long-serving staff while trying to safeguard the company’s future.
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