TCS layoffs: Will new bench policy result in more than 12,000 pink slips? ‘Everyone is scared…’ – Times of India
TCS layoffs: Tata Consultancy Services (TCS) announced 12,000 layoffs recently, but there are fears amongst the company employees that the sackings may exceed that number. According to an ET Prime report, TCS employees are fearful that the IT giant’s new bench policy may lead to the total number of layoffs going above the 2% reduction in workforce that has been announced.The company’s new bench policy has left many employees concerned about their job security, especially those currently unassigned to projects, the report said.TCS layoffs are in focus, triggering worries that additional IT firms might interpret this as an indication that layoffs – a practice traditionally avoided by the sector – are becoming standard practice.Also Read | TCS layoffs: Amidst mass sackings, Tata Consultancy Services stops salary hikes & senior level hiring; ‘huge cost cutting in…’NASSCOM indicates that additional workforce reductions are expected in the sector, noting that the technology industry has reached a critical transformation phase as artificial intelligence and automation alter operational methodologies.
What is the new TCS Bench Policy?
TCS modified its bench policy in response to slowing growth this year, establishing a 35-day annual limit for employees to remain on the bench and requiring 225 days of project allocation. Non-compliance could lead to disciplinary measures, including PIPs and employment termination.The concept of bench in IT organisations – referring to staff without project assignments – presents a dual scenario. During high-growth periods, it serves as a ready pool of resources for immediate project deployment. However, during slow-growth phases, the increased number of unassigned employees leads to higher costs without corresponding client billing, which negatively impacts profit margins.According to two TCS insiders who spoke to ET Prime, the organisation has instructed its industry service unit leaders to create lists of potential layoffs, targeting middle and senior-level staff, including those presently working on projects.Also Read | ‘Halt all terminations…’: TCS layoffs prompt NITES to write to Labour Minister; IT employee union wants stay on 12,000 job lossesAdditionally, the company has already started the process of dismissing employees who are currently on the bench, with terminations actively taking place.“If you are on the bench, at least you know you are in danger. If you are on a project, you don’t know what is going to happen. Everyone is scared. And the bench policy makes things worse for older employees,” a senior TCS executive who has worked at the company for over 15 years was quoted as saying.TCS veterans indicate that this regulation disproportionately affects experienced staff members.“For younger employees, it is easy for them to find a project. Clients accept their salaries and billing rates. For a more senior resource, the client acceptance is only the first step. Then you have to adjust within a project – it is not easy for a senior person to just enter a project, the team leader has to accept. There is that inter-personal peer relationship to consider. It is more complicated,” said the employee quoted above.Also Read | TCS layoffs ‘biggest ever’ for Indian IT! Artificial Intelligence not to blame for ‘difficult’ decision? Top 10 things to know about mass sackingsThe employee notes that senior personnel might require up to two months to secure project assignments. “So, if you are a senior employee and your project ramps down or shuts down or changes focus, you land in the danger zone,” the TCS employee said.
Will Job Losses At TCS Cross 12,000?
When questioned about potential job losses of over 12,000 due to the bench policy, TCS did not provide an immediate response to ET Prime. During a telephone conversation with ET Prime, a TCS executive said the 12,000 figure included all reductions. However the executive did not clarify about how the bench policy would be implemented should more than 12,000 staff reach the limit in FY26, with nearly three quarters remaining.
