TCS employees’ salary will not increase! New recruitments also banned, this new report came amid layoffs

TCS Share Falls: TCS has decided to lay off 12 thousand employees. This decision of the company created a stir in the IT sector. After this, a big fall was seen in Tata’s shares.

TCS Layoffs: Tata Consultancy has recently decided to lay off about 12 thousand employees. This decision of the company created a stir in the IT sector. After this, Tata’s shares have seen a big decline and this year IT stocks have performed the worst on Nifty. Compared to last year, its shares have fallen by more than 25 percent so far this year, while its share has fallen by 12 percent in just one month.

TCS’s new planning

However, this is a major organizational change. The report said that the CEO of TCS has assured that the layoffs will be done in a phased manner, so that immediate disruption can be minimized. This step is considered to be part of the company’s cost-management strategy, which aims to maintain competitiveness and increase operational efficiency.

Meanwhile, according to the Economic Times report, TCS can take steps to save its expenses, including stopping the recruitment of experienced professionals and deciding to postpone the salary increment of employees. Within just two days of the company’s decision to lay off 12,000 employees, TCS’ market capitalisation declined by Rs 28,148.72 crore.

Ban on new recruitment

TCS has now tightened its internal policies for employees who are not currently deployed on a client project (called ‘on the bench’). Such staff are now given only 35 days to join a billable assignment (project), otherwise they will have to leave the company. Such staff cuts have already begun in cities like Hyderabad, Pune, Chennai and Kolkata.

According to the ET report, the onboarding process of lateral hires (experienced employees) is now taking more than 65 days. This indicates a major slowdown in the process, which can impact project delivery and team productivity.

The report quoted a senior IT analyst as saying that layoffs at the mid-senior level alone could save TCS around $300–400 million (about Rs 2,400–3,600 crore) annually. This could lead to an improvement of 100–150 basis points (bps) in operating margins.

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