TCS Layoffs: Mid & Senior-Level Employees To Receive Up to 2 Years’ Severance Pay in Workforce Restructuring?

Tata Consultancy Services (TCS), India's largest IT services company, is currently undergoing a significant workforce restructuring initiative. As part of this transition, TCS is offering attractive severance packages to employees whose skill sets have become outdated or misaligned with the company's evolving business needs.

Around 12,000 TCS Employees' Job In Risk

Reportedly TCS plans to reduce its workforce by about 2% over the next year, which amounts to approximately 12,000 employees. The company aims to stay agile and future-ready, ensuring that its workforce is equipped to meet the demands of emerging technologies such as artificial intelligence, cloud computing and data analytics.

This workforce rationalisation is not across-the-board but rather focused on specific roles and seniority levels, primarily targeting mid- and senior-level employees who have not upskilled in line with client requirements.

TCS Layoffs: Severance Pay Ranges from 6 Months to 2 Years Based on Service Duration

Layoffs impacted employees will receive severance benefits based on their tenure with the company as MoneyControl reported. All TCS employees affected by this decision will receive a standard three-month notice period pay. Beyond that, the severance pay ranges from a minimum of six months to as much as two years' salary, depending on how long the employee has been with TCS.

Those with 10 to 15 years of service are reportedly receiving severance payouts equivalent to about 1.5 years of salary. Employees with over 15 years of tenure are eligible for the highest packages, ranging between 1.5 and 2 years' salary.

However, employees who have been on the "bench"-that is, unassigned to any projects-for more than eight months will only receive the three-month notice pay, with no additional severance.

Most of the layoffs and internal adjustments were completed between August and September 2025, though a small number of cases are still under review. For these, TCS is actively working through its Resource Management Group (RMG) to find new internal roles where possible.

TCS Provides Career Outplacement Support and Job Transition Services for Laid-Off Employees

In addition to severance pay, TCS is providing several forms of support to assist impacted employees in their transition. Career outplacement services are being offered, with TCS covering agency fees for up to three months. These services include resume development, job search assistance and interview preparation. In certain cases-particularly for junior employees-this period may be extended based on individual circumstances.

TCS Offers Early Retirement with Full Benefits to Eligible Employees

The company is also offering early retirement options for employees nearing retirement age. These employees are being allowed to exit with full benefits, including continued insurance coverage and additional severance based on their years of service. Recognizing the emotional and mental toll of job loss, TCS has expanded access to its "TCS Cares" program, which provides counseling, therapy sessions, and mental wellness resources to both affected employees and their families.

This restructuring initiative is part of a broader industry trend, as major IT services companies shift focus from legacy systems to new-age digital technologies. Companies like Infosys, Wipro, and HCLTech are undergoing similar realignments, pushing employees to reskill and adapt to fast-changing client needs.

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