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TCS Not Planning Large-scale Layoffs, Issues Clarification

TCS management is likely to comment on the issue again on Thursday, when the company will report its December quarter earnings.
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TCS Not Planning Large-scale Layoffs, Issues Clarification

TCS on Tuesday issued a statement denying rumours of large scale layoffs circulating on social media. Reports of layoffs at TCS have become a big talking point in the IT industry that employs over 30 lakh people - nearly one quarter of total private sector jobs in the organised sector.

Here is the full statement from the company:

There have been discussions on various social media forums about alleged large scale layoffs at TCS. During the course of the last few weeks, we have reached out to our employees and clarified that these are entirely false and baseless claims.
 
However given the persistence of these rumors in the social media, we would like to place on record that TCS has not initiated, and is not planning to initiate, any large scale exits of any section of its staff in any part of the organisation.
 
Performance appraisals and associated processes are an integral part of the company's operations.  Given the circumstances, as an exception we are sharing specific data on the actual quantum of involuntary separations over the last 3 years, which establishes that there has not been any exceptional action in the last few months.



The involuntary attrition for the first nine months of this year, has been 2574 employees which represents 0.8 per cent of the total employee strength.  The corresponding numbers for FY14 and FY13 were 2203 and 2132 respectively.  The total involuntary attrition for the current fiscal year will be around 1 per cent.
 
TCS is the leader in the Indian IT industry and has always built its organization on strong employee values.  We have consistently nurtured our in house talent and have also been the largest job creators in the country.  Our leadership status continues to present many growth opportunities for all our employees, and it is reflected in the fact that we have a consistently had the highest employee retention levels in the industry.

The TCS stock on Tuesday ended 0.47 per cent down at Rs 2498, in line with the broder Nifty and the Sensex.

TCS management is likely to comment on the issue again on Thursday, when the company will report its December quarter earnings.



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