After Accenture Plc, Tata Consultancy Services Ltd. is also undergoing a workforce restructuring to seemingly align itself better in an increasingly AI world.
According to a Moneycontrol report published on 2 October 2025, TCS is offering severance pay of up to two years to employees, whose skills no longer align with the company’s needs, as part of a broader workforce restructuring. That includes notice period pay of three months, as well as a severance package that ranges from six months to two years’ salary, depending on how long the employee has been working at the IT services firm.
Employees who are “on the bench” for over eight months are being offered a simpler package of only three months of notice period. Additionally, for employees with more than 15 years of experience, TCS is providing support for career transition and, in some relevant cases, early retirement options.
Here’s a look at the FAQs as listed by Moneycontrol:
1. Who qualifies for the highest severance? Employees with over 15 years of service whose skills have become redundant can receive up to two years’ salary.
2. Are all bench employees being laid off? No, only those unallocated for more than eight months without suitable roles.
3. What support is TCS offering beyond monetary? Outplacement services, access to mental health support, and ‘TCS Cares’.
4. Can employees take early retirement? Yes, those eligible can, with full benefits and additional severance.
{{/usCountry}}4. Can employees take early retirement? Yes, those eligible can, with full benefits and additional severance.
{{/usCountry}}“In keeping with the values of our company, those affected by our recent initiative to realign skills have been provided care and support as is due to them in each of the individual circumstances,” a TCS spokesperson told Hindustan Times over email, when asked for a comment on the matter.
Accenture Layoffs
The report of TCS’s workplace restructuring follows a similar move by larger peer Accenture Plc, which has decided to “exit” employees who cannot be retrained in AI as part of a similar restructuring plan.
“We are reinventing what we sell, what we sell, how we deliver, how we partner, and how we operate Accenture,” Julie Sweet, chief executive officer at the world’s largest IT services firm, said during a post-earnings call on 25 September 2025. “We have expanded our partnerships. We are upskilling our re-inventors, which is our primary strategy.”
“We are exiting…on a compressed timeline…people where re-skilling…based on our experience…is not a viable path for the skills we need.”
In all, Accenture has exited 12,000 employees in one quarter. More can follow. As on 31 August, the company had a global headcount of 779,000.
TCS Layoffs
To be sure, TCS itself saw a round of layoffs in July wherein 12,000 people were let go. Some of them were on the bench and others who continued to work from home rather than from the office as required by the company, according to a Livemint report. All business unit heads were asked by TCS management to send a release list—employees whom the company can consider for the pink slips.
TCS, according to the Livemint report, will let go of more people in the coming months, as it expects to complete their layoffs exercise by the end of the year. As on 30 June 2025, TCS had 613,069 employees. We’ll come to know of its new staff strength when the company presents its second quarterly results on 9 October 2025.