With love, from HR: TCS says staff axed `with a lot of care’
Agencies
Synopsis
Tata Consultancy Services is not targeting specific headcount reductions, according to HR chief Sudeep Kunnumal. The company saw a net reduction of nearly 20,000 employees in the September quarter due to voluntary and involuntary attrition, with mid and senior-level staff impacted by AI-led disruptions. TCS is providing comprehensive support to departing employees.
By ETtech
The chief of human resources at Tata Consultancy Services, Sudeep Kunnumal, said the company is “not chasing a target” with respect to its headcount reduction. The comment came during the September quarter earnings call in the backdrop of mass layoffs and substantial attrition at the Indian IT services exporter.
Meanwhile, the company’s net headcount reduced by nearly 20,000 during the previous quarter. Its attrition rate moved to 13.3% during the second quarter of fiscal 2025, up from 12.3% in the year-ago period, but less than 13.8% in the first quarter. Total headcount as of September-end stood at 593,314.
Responding to a question on whether the quantum of the headcount reduction seen during the July-September period will continue in the subsequent quarter, chief human resources officer Kunnumal said the company will continue to evaluate everyone.
“The 20,000 net headcount decline is due to voluntary and involuntary attrition… we don't have a target… We'll continue to evaluate everyone after all the investment in learning and development that we've done,” Kunnuamal said.
Mid and senior-level staff members unable to find the right role based on their seniority will be released “with a lot of care”, he said.
The mass layoffs at TCS are primarily because of mid and senior-level staff becoming redundant due to AI. Benched employees are also expected to be in the line of fire.
Kunnumal said TCS is providing “benefits, counselling, and outplacement support” to fired employees, as well as “severance at terms higher than industry standards”. In the second quarter, the company spent Rs 1,135 crore towards severance pay.
The IT major posted muted results for the September quarter, with 1.4% growth on-year in net profit, at Rs 12,075 crore, and a 2.4% rise in revenue from operations, at Rs 65,799 crore.
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In July, TCS announced plans to fire 2% of its global workforce — or 12,000 employees — over the year amid macro uncertainties and AI-led disruptions. The company recently said it has already laid off half of these souls.Meanwhile, the company’s net headcount reduced by nearly 20,000 during the previous quarter. Its attrition rate moved to 13.3% during the second quarter of fiscal 2025, up from 12.3% in the year-ago period, but less than 13.8% in the first quarter. Total headcount as of September-end stood at 593,314.
Responding to a question on whether the quantum of the headcount reduction seen during the July-September period will continue in the subsequent quarter, chief human resources officer Kunnumal said the company will continue to evaluate everyone.
“The 20,000 net headcount decline is due to voluntary and involuntary attrition… we don't have a target… We'll continue to evaluate everyone after all the investment in learning and development that we've done,” Kunnuamal said.
Mid and senior-level staff members unable to find the right role based on their seniority will be released “with a lot of care”, he said.
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The mass layoffs at TCS are primarily because of mid and senior-level staff becoming redundant due to AI. Benched employees are also expected to be in the line of fire.
Kunnumal said TCS is providing “benefits, counselling, and outplacement support” to fired employees, as well as “severance at terms higher than industry standards”. In the second quarter, the company spent Rs 1,135 crore towards severance pay.
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The IT major posted muted results for the September quarter, with 1.4% growth on-year in net profit, at Rs 12,075 crore, and a 2.4% rise in revenue from operations, at Rs 65,799 crore.
