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Wednesday, February 06, 2008

TCS LayOffs - Less 500 employees in a day

Tata Consultancy Services (TCS) - One of the world's leading information technology companies which boasts of processes like the Global Network Delivery Model™, Innovation Network, and Solution Accelerators has quietly laid-off 500 of its employees (or 1% of its total workforce). TCS has been in the news lately for all the wrong reasons - last week it was on the headlines for cutting down on variable pay across the board amd now this.

Well, showing the door for 1% of its workforce for a large MNC like TCS maynot be a big issue as per the World Business Standards - but it sure is for the Indian IT Market. The cause could be easily attributed to the rising rupee vs the US dollar that has been building up the pressure on margins and revenues. Another factor that has been bothering most Indian IT companies is the signs of a slowdown in the US economy, the largest spender on IT systems and outsourcing.

TCS shrug off the layoff issue terming it as "not an exceptional thing". It says that it has an internal policy to review staff performance twice a year where staff are rated on a scale of 1 to 5. Staff with low scores( 2 or less) are either asked to re-train or are sent for counselling depending on their role. Staff who are still unable to meet the performance requirements are asked to find work elsewhere.

Just a sign of how the IT market is heading!!

4 comments:

  1. rambhai said,

    wow thats gotta bring bad publicity to the company~~~i mean 500 ppl out in a sec~~~thats sad

    on 2/08/2008 11:45 PM


  2. Anonymous said,

    good tht they review performance

    on 2/11/2008 1:20 AM


  3. Anonymous said,

    Guys, This is no sign of Slowdown. What should be a gain for the Company as big as TCS who works with turnaround of a couple of billion dollars, make profits in few hundred Millions. And what you are saying is a layoff of mere 500 employess is a sign of Slow down... cannot agree check your sources and think logical before you spread the word

    on 2/13/2008 1:32 AM


  4. Anonymous said,

    Hi Jason,
    I sincerely believe that you should put some thought on the subject before you write. Your comments sound quite immatured. A company like TCS would never waste time in recruiting, training and just firing someone immorally. You speak with an assumption that, all the people who were fired are high-performers. Why would someone feed a white-elephant, while there is a severe shortage of food?

    on 10/17/2008 3:27 PM