TCS Layoffs 2025: Tata Consultancy Services (TCS), the country's largest IT company, has taken an unprecedented step that has caught the attention of not only its employees but the entire corporate world. The company has decided to lay off employees whose technical knowledge is no longer relevant to the company's new needs. That is, employees whose skills have become outdated or who have failed to update themselves to new technologies are being said goodbye to the company. But TCS isn't limited to just layoffs; it is offering these employees severance packages ranging from six months to two years' salary to help them navigate their future.
Why was this difficult decision made?This decision comes at a time when the global technology landscape is rapidly changing. According to TCS, this is the era of automation, artificial intelligence, and new technologies. Therefore, employees with outdated skills are not fitting into the company's future plans. According to a Moneycontrol report, TCS is planning to lay off approximately 12,000 employees over the next year. The company's CEO, K. Krithivasan, described this as one of the most difficult decisions of his career, but also called it necessary to remain competitive in the future.
Which employees were most affected?The layoffs have affected different levels of employees:Benched employees: Employees who have not been engaged in any project for the past eight months are considered "benched" in company parlance. Such employees are being let go with three months' salary.Experienced employees with 10-15 years: Employees who have worked for the company for 10 to 15 years but whose skills no longer meet the company's needs are being offered a severance package of 1.5 years' salary.Employees with more than 15 years of experience: Those who have contributed to the company for more than 15 years but have not been able to keep up with new technological demands are being offered severance packages consisting of 1.5 to 2 years' salary. Select senior employees are being considered for new roles, but such opportunities are extremely limited.
Farewell with Respect and Care- TCS has clarified that these layoffs are not merely a process of layoffs, but an effort to farewell employees with respect and compassion. The company has launched several support programs for employees:
- Job Search Support: The company is covering the fees of job search agencies for three months, with this facility available for longer periods, especially for junior employees.
- TCS Cares Program: Therapy and counseling are being provided for employees experiencing mental stress.
- Early Retirement Offer: Employees nearing retirement age are being offered the option of early retirement, which includes full retirement benefits such as pension, insurance, and 6 months to 2 years of additional salary.
Current Status of the ProcessAccording to sources, TCS has completed most of the layoffs and adjustments between August and September 2025. A select few employees are still being offered the opportunity to explore new roles within the Resource Management Group (RMG).