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TCS Layoffs Wind Down as Reports Detail Severance of Up to Two Years’ Pay

Tiered payouts reflect an AI-driven shift in client work.

Overview

  • Sources say the bulk of Tata Consultancy Services’ planned 2% workforce reduction — roughly 12,000 roles — was completed by the end of September, with only isolated cases still under review.
  • Multiple reports describe packages that include three months’ notice pay plus severance ranging from six months to two years’ salary based on tenure, with around 1.5 years for 10–15 years’ service and up to two years for more than 15 years.
  • Employees unallocated to projects for over eight months are generally being offered only the three-month notice pay, and reports emphasize that not all bench employees are being released.
  • Additional measures reportedly include early retirement options with full benefits, outplacement support with agency fees covered for at least three months, and access to counseling under the TCS Cares program.
  • TCS says affected employees are receiving care and support, while the NITES forum alleges forced resignations in Pune that the company denies; management is slated to address performance and staffing on October 9 with Q2 FY26 results.