TCS to Cut 12,000 Jobs in 2025 | Severance Package Details & Employee Support
TCS Layoffs 2025: Tata Consultancy Services is cutting 12,000 jobs globally. Employees may get up to 2 years' salary as severance pay. Check full details, severance package structure, and career support options here.
TCS to Cut 12,000 Jobs in 2025 – Severance Pay of Up to 2 Years Offered
Tata Consultancy Services (TCS), one of India’s largest IT companies, has announced a major restructuring move in 2025 that will impact nearly 12,000 employees. According to reports, the company has started workforce reduction to align with changing client demands, automation, and emerging technology needs. Some employees will receive severance packages of up to two years’ salary, making it one of the most significant severance programs in the Indian IT sector.
Why is TCS Cutting Jobs in 2025?
The IT industry is facing rapid shifts due to automation, AI adoption, cloud computing, and evolving client expectations. Many roles, especially at the mid to senior level, are being redefined or eliminated. According to industry experts, employees who have not upskilled in the latest technologies such as AI, data science, cloud platforms, and cybersecurity are the most affected. TCS CEO K Krithivasan called this decision “one of the toughest” of his career but emphasized that it was necessary to keep TCS agile and competitive.
How Many Employees Will Be Affected?
The job cuts represent around 2% of TCS’s global workforce. With over 600,000 employees worldwide, this translates to more than 12,000 professionals. The layoffs are spread across multiple regions, but a significant number are expected in India, where TCS has its largest workforce.
TCS Severance Package 2025 – What Employees Will Receive
TCS has assured that impacted employees will be treated with fairness and dignity. Severance packages vary depending on the employee’s tenure and role within the company.
| Employee Category | Severance Package |
|---|---|
| Minimum Package | 3-month notice pay + 6 months’ salary |
| Mid-level employees (5–10 years service) | Up to 1 year of salary |
| Senior employees (10–15 years service) | Around 1.5 years’ salary |
| Veteran employees (15+ years service) | Up to 2 years’ salary |
| Employees on Bench for 8+ months | Only notice period pay (3 months) |
Support Offered to Employees
- Career Transition Services: TCS is providing outplacement services and paying agency fees for three months.
- Mental Health Support: Impacted employees will have access to the “TCS Cares” program for counseling and mental wellness.
- Early Retirement Option: Eligible employees may opt for early retirement with full benefits and additional severance.
- Resource Management Group (RMG): Employees without current assignments can apply for redeployment in other projects.
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Impact on IT Industry and Employees
This move by TCS highlights a larger trend in the IT sector, where companies are shifting focus towards AI, cloud, and digital transformation. While TCS is offering generous severance, employees will now need to focus on upskilling in emerging technologies to stay relevant. Industry insiders believe similar restructuring may also occur in other IT firms, including Infosys, Wipro, and Tech Mahindra, in the coming year.
What Should Employees Do Next?
Employees impacted by the layoffs should:
- Utilize TCS-provided career transition and counseling services.
- Explore opportunities in AI, data science, cloud computing, and fintech sectors.
- Use the severance period to upskill through online certifications (AWS, Google Cloud, Microsoft Azure, Python, etc.).
- Apply for government jobs and PSU openings, which often prefer experienced IT professionals.
FAQs – TCS Layoffs 2025
Q1: How many jobs is TCS cutting in 2025?
Ans: TCS is expected to cut over 12,000 jobs globally, around 2% of its workforce.
Q2: What is the maximum severance pay?
Ans: Employees with over 15 years of service can receive up to two years’ salary.
Q3: Will TCS provide mental health support?
Ans: Yes, employees will have access to the TCS Cares program for mental wellness.
Q4: Are employees being given early retirement options?
Ans: Yes, eligible employees can opt for early retirement with full retirement benefits plus severance pay.
Q5: Why is TCS cutting jobs?
Ans: The layoffs are due to automation, AI adoption, and changing business requirements that have made some roles redundant.
Conclusion
The TCS layoffs 2025 represent one of the largest workforce restructurings in the Indian IT sector in recent years. While it is a difficult period for many employees, the company’s severance packages, career support, and transition services aim to ease the impact. For professionals, this is a reminder of the importance of continuous learning and upskilling in a rapidly evolving tech world.
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