TCS says THIS about severance packages as layoff target nears

Tata Consultancy Services (TCS) reaches the end of its previously announced layoffs, with only a handful of special cases remaining.

This comes 2-3 months after the tech giant reportedly announced its intention to restructure itself by cutting off 2 per cent (roughly 12,000 employees) of its 6,00,000-strong global workforce.

TCS' severance packages have now come under the spotlight. The company plans to offer them to long-serving employees whose skills no longer align with the company's updated requirements as well as some who have not upskilled, a Moneycontrol report said.

Employees facing the axe will receive three months' notice pay, followed by severance packages ranging from six months to two years' salary, depending on their tenure.

Out of these, employees with 10-15 years of service may receive severance pay equivalent to 1.5 years' salary, while those exceeding 15 years at the company would be eligible for the highest-value severance packages.

Those who have been unallocated to projects (or "on the bench", in IT parlance) for more than eight months will only get three months' notice pay.

Employees nearing retirement, however, would be eligible for early retirement under the 'TCS Cares' programme, which includes insurance and a severance package worth six months to two years' salary, among other retirement benefits.

In addition to payouts, the company is also offering career assistance via outplacement services, which it will fund for three months (or more in the case of younger employees being let go).

TCS was recently at the centre of widespread panic on social media over the actual number of employees being let go, with netizens speculating numbers between 30,000 and 60,000. A number of netizens had also alleged forced resignation attempts and no severance, which had fuelled the panic further.