TCS Plans 2% Global Workforce Reduction in Middle and Senior Roles Over Next Year

TCS I Layoff: IT major Tata Consultancy Services (TCS) plans to layoff 2 per cent of its global workforce over the a one-year-long period to establish itself a future-proof tech corporation.

According to a company statement, TCS said that the decision is part of a strategic move which includes several initiatives such as emerging tech, proliferating its presence in new markets, and revamp of its infrastructure and workforce model.

“As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year,” the company stated, citing media reports.

The reduction is expected to affect employees across international markets, especially mid and senior level personnel.

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The move to reduce its workforce globally comes at a time when the labour and employment ministry has asked Tata Consultancy Services to attend a meeting with the Chief Labour Commissioner (CLC) in New Delhi next week to discuss the delay in onboarding of more than 600 experienced professionals.

Shedding light on the company's ability to deliver, TCS said it wont be impacted and the reduction in workforce was being handled with care.

“We understand that this is a challenging time for our colleagues likely to be affected. We thank them for their service and we will be making all efforts to provide appropriate benefits, outplacement, counselling, and support as they transition to new opportunities,” the company said.

Further, the Tata Group entity also highlighted its that various reskilling and redeployment programmes have already been initiated as part of this transformation. aiming at aligning its workforce with future-focused capabilities.

The announcement comes at a time when there's a large-scale shift within the global IT services vertical, as several companies have been increasingly emphasizing their focus on integra trends such as digital transformation, artificial intellegence (AI) integration, and operating efficiency.