TCS rolls out severance packages amid restructuring, offers up to 24 months’ pay to exiting employees

Tata Consultancy Services (TCS) is reportedly offering severance packages of up to two years’ salary to employees whose roles are being made redundant as part of its ongoing restructuring exercise, according to a Moneycontrol report.

The move comes as India’s largest IT services firm sharpens its focus on future-ready skills, particularly in areas such as artificial intelligence and new operating models.

Citing sources, the report said affected employees are entitled to a three-month notice period, followed by severance pay ranging from six months to two years depending on their tenure and experience.

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Employees who have been on the bench for more than eight months will receive a simpler package — three months’ notice pay. Mid-level employees with 10–15 years of experience can expect up to 1.5 years of severance. Those with over 15 years of service will additionally receive career support through outplacement services, with TCS covering agency fees for three months. In select cases, the company will also extend mental health support through its TCS Cares programme.

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The company is also offering voluntary retirement schemes for employees nearing retirement, along with insurance coverage and severance benefits ranging from six months to two years’ salary.

In July, TCS announced plans to reduce its global workforce by around 2% (approximately 12,000 employees). CEO K Krithivasan said the step is aimed at making the company more agile and better prepared for rapid technology disruptions. He added that TCS is deploying AI at scale and reassessing the skills required for its future growth.

As of June 30, 2025, TCS’s total headcount stood at 613,069, of which 35.5% were women.

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