400 TCS staff resign after work review
The people have left their jobs at India’s largest IT software outfit, Tata Consultancy Services Ltd, after an annual performance review, report Jaidev Majumdar and Suprotip Ghosh.business Updated: Feb 05, 2008 22:19 IST
In what could be a blip in India’s software industry, 400 people have left their jobs at India’s largest IT software outfit, Tata Consultancy Services Ltd, after an annual performance review.
TCS spokesperson Prodipto Bagchi refuted that the employees have been “laid off”, even among the freshers. He said it was but a routine appraisal system that has “disengaged about 500 people” within the organisation this year, which is forced attrition and a regular practice. TCS has an employee strength of 1,08,000. The exodus could be the largest for India’s largest software employer, according to industry estimates. The Mumbai-based company added 4,037 jobs in the three months ended December 31.
Sources though claim that the employees have been asked to go. The development comes after TCS announced cuts in the variable pay component of its employees on January 30. The cuts on an average could lessen employee salaries by 1.5 to two per cent this month onwards. The eliminated jobs account for less than 0.5 percent of the company's 1,08,229 employees on December 31 according to calculations by Bloomberg. The employees, whose work experience ranged from 2 years to 15 years, were asked to leave after consistently failing reviews, Bagchi added.
Industry sources claim that TCS has laid off fresh recruits across locations that may do up to a few hundreds. The weakening dollar and the looming economic recession in the US are believed to be the major reasons for such retrenchments.
It is learnt that IBM CEO Samuel J Palmisano has recently shot out an e- mail to employees reassuring them that IBM is on the growth path and layoffs will not happen. Admitting that The company will continue with “niche recruitments” in key areas.