TCS Breaks Its Silence, Says No Plan For Large-scale Layoffs

India’s largest software services firm Tata Consultancy Services (TCS) has now reacted to reports that it was looking at a significant performance-related restructuring of its workforce. The IT firm clarified that TCS “does not plan to initiate any large-scale layoffs of any section of its staff in any part of the organisation,” as is claimed in a PTI report.

The Mumbai-headquartered firm has termed these exits as ‘involuntary attrition.’ It stated that in the first nine months of FY’15, 2,574 employees have been asked to leave, adding that the total number of layoffs in this fiscal may exceed 3,000, the leading news agency reported.

As per a statement issued by the TCS, "The involuntary attrition for the nine months (April-December) of this year has been 2,574 employees, which represents 0.8% of the total employee strength. The corresponding numbers for FY'14 and FY'13 were 2,203 and 2,132 respectively. The total involuntary attrition for the current fiscal year (ending March 31, 2015) will be around 1%." It’s important to note that the IT company had a total headcount of 3,13,757 at the end of September 30, 2014.

The IT firm, which operated in 46 countries, said it has assured its employees that these are entirely false and baseless claims by sending them a message.

The PTI report also claims that an official statement from TCS states, "There have been discussions on various social media forums about alleged large scale layoffs at TCS...we would like to place on record that TCS has not initiated, and is not planning to initiate any large scale exits of any section of its staff in any part of the organisation."
(Image: The Economic Times)