TCS layoff update: Ratan Tata’s TCS is offering up to two years’ salary to…, early retirement option is available for…

Ratan Tata's TCS is offering attractive severance packages for the employees who have been affected in the recent layoff.

TCS layoff update: In a significant development amid the news update that Tata Consultancy Services (TCS), the country’s largest IT company, is currently undergoing layoffs, media reports have said that the company has announced attractive severance packages for the employees who have been affected due to the recently announced layoff. Reports say that those employees whose skills no longer match changing technology and the company’s needs are being offered a salary package ranging from six months to a maximum of two years. Here are all the details you need to know about what the Tata Consultancy Services is offering to employees who have been affected by the layoff.

Why is TCS firing people?

According to a Moneycontrol report in July, TCS had decided to lay off approximately 2 percent of its workforce, or approximately 12,000 people, over the next year. The company believes this step is necessary to remain agile and future-ready in an era of technological change and automation.

“In line with our values, employees affected by skill realignment are being provided with appropriate care and support, depending on their circumstances,” Ratan Tata’s TCS said in a statement.

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Who is being affected?

According to company sources quoted by media reports, these layoffs are primarily affecting employees whose skills have become irrelevant or who have not upskilled themselves. These employees are being offered a three-month notice period and a severance package ranging from six months to 24 months, depending on their length of service.

Why is TCS offering early retirement options?

Media reports also say that the company is also extending early retirement options to employees who are close to retirement age. Under this scheme, they will receive full retirement benefits such as insurance, along with an additional severance package equivalent to six months to two years of salary, depending on their years of service.