Tata Consultancy services – TCS puts 1,000 employees under performance watch – Soft layoff?

Tata Consultancy services – TCS has reportedly put its 1,000 employees under performance watch. Keeing employees under performance watch looks like the latest approach of IT companies to start firing – may be it is a kind of soft layoff or a long notice period for employees to leave. It may be recalled that last year TCS had asked 500 employees to leave after a similar performance improvement plan.

TCS is India’s largest software company and it has joined its rival Infosys which too has put 5,000 of its employees under the so-called performance scanner (a pecurser to layoffs).

Reportadly TCS has seen project cancellations in the last four weeks. S Mahalingam who is chief financial officer (CFO) of TCS, reported saying that the company sees slowdown in demand bottoming out in the March quarter and expects a recovery in the June quarter.

Infosys few weeks ago has asked senior managers (project managers, senior and group project managers, delivery managers) to give lowest performance rating (4 on a scale of 1-4) to the ‘underperforming’ 5 per cent as a part of its consolidated relative ranking (CRR). Though lowest rankings are not new in the company, this is the first time that Infosys has made it compulsory. Some 40-50 sales executives at Infosys too have been reportedly asked to quit in the last two months. Most of these were located in the US and were from consulting background.

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