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TCS Layoffs: Recently, a decision has been taken by Tata Consultancy to lay off about 12 thousand employees. This decision of the company stirred up the IT sector. This has seen a major decline in the shares of Badha Tata and this year the IT Stocks had the worst performance on the Nifty. Compared to last year, so far more than 25 percent of its shares fell, while its stock fell down 12 percent in just one month.
New planning of TCS
However, this is a major organizational change. The report said that on behalf of the CEO of TCS, it has been assured that the layoffs will be done in a phased manner, so that immediate disruption can be minimized. This step is considered part of the company’s cost-management strategy, aims to maintain competitiveness and increase operational efficiency.
Meanwhile, according to the Economic Times report, TCS can take steps to save their expenses, in which the recruitment of experienced professionals and can decide to avoid the salary increase of employees. Within just two days, the capital of TCS reduced Rs 28,148.72 crore from the market within two days of the company’s decision to pruning 12 thousand employees.
Ban on new recruitment
TCS has now made its internal policy very strict for employees who are not currently posted on any client project (called ‘bench’). Such staff has now been given only 35 days time so that they can join a billable assignment (project), otherwise they have to leave the company. The process of cutting such staff has already started in cities like Hyderabad, Pune, Chennai and Kolkata.
According to the ET report, the onboarding process of Lateral Higher (Experienced employees) is now being delayed by more than 65 days. This reflects the large slowness in the process, which can affect project delivery and team’s productivity.
In the report, citing a senior IT analyst, it was said that the TCS alone could save about 300–400 million dollars (about Rs 2,400–3,600 crore) from the mid-century umbrellas. With this, it is possible to improve the 100–150 basis points (BPS) in the operating margin.
