Tata Consultancy Services (TCS) to layoff 1300 – started retrenchment at Chennai?
Tata Consultancy Services (TCS), the biggest software company in India has indicated that it will lay off less about one percent (1300 employees) of its global workforce. This will be done over the next few months, as these employees failed to meet performance standards. This is as said by a company spokesperson. TCS has retrenched about 500 people last year on performance issues.
According to some reports the lay-offs have already started happening at the company’s development centres in Chennai, where over two hundred employees have been asked to leave in the last fortnight.
It may be recalled that in an interview in Kolkota the company’s CEO S Ramadorai said the company would review the variable pay component for its employees and also increase the working hours. When asked about job cuts, he had said the company wasn’t planning to cut jobs immediately but might have to if the situation worsened.
At TCS the employee expenses are about 53-54% of the company’s total cost. TCS has total employee count of 1,30,343.
IT companies in India have started adopting stringent appraisal measures, trimming costs and improving productivity as they grapple with the global economic slow down. They are also hit by anti outsourcing initiatives and strict H1B norms in USA.
Tags: h1-b, layoff, recession, TCS layoffRelated posts
Posted in: Business News
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It’s really bad things to the employees. Because most of them have family as well.
April 25th, 2009
It is all humbug. One of my good friends who was in TCS for 5+ yrs was asked to leave. His performance was always good but as he was on bench for more than 60 days was asked to leave. This shows the hypocracy surrounding the IT companies.
April 30th, 2009