TCS Restructuring: 12,000 Employees Affected by Tiered Severance Plan 💸

Sudheendra Kumar2 months ago2 months ago02 mins

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TCS Restructuring: 12,000 Employees Affected by Tiered Severance Plan 💸

TCS offers up to 2 years’ severance pay amid workforce restructuring

Tata Consultancy Services (TCS) has introduced a tiered severance package for approximately 12,000 employees, primarily mid- and senior-level executives, as part of a major workforce realignment.

Employees who have been unallocated or “on the bench” for over eight months without finding a suitable role are offered a simpler package, consisting of notice period pay equivalent to three months.

The restructuring primarily affects employees whose skills have become redundant or who have not upskilled to meet evolving client requirements.

Under the program, employees in this category are entitled to a notice period pay of three months, followed by a severance package that ranges from six months to two years’ salary, depending on tenure.

The company is focusing on emerging technologies like AI, data management, and cybersecurity.

Key Details of the Severance Package:

– Minimum Severance: 6 months’ pay

– Tenure-Based Severance:

– 10-15 years of service: 1.5 years’ pay

– Over 15 years of service: 2 years’ pay

– Support for Affected Employees:

– Outplacement agency fees covered for up to 3 months

– Mental health support through TCS Cares, offering funded access to therapists

– Early retirement option with full access to retirement benefits and insurance

Who is Eligible:

– Employees across levels, including those on the bench or lacking new skills