TCS lays off employees, spends Rs 1,135 crore on restructuring

TCS spent ₹1,135 crore on restructuring. The company gave this information in the September quarter results. The company said it had to spend ₹1,135 crore on restructuring in the second quarter of this financial year. This happened due to the company’s decision to lay off many employees. The company also changed the roles of several employees. The company also had to pay compensation to the retrenched employees. TCS is India’s largest IT company.

The company announced its results on October 9.

This Tata Group company announced its September quarter results on 9 October. The company told stock exchanges that its consolidated net profit was hit due to restructuring charges, which increased marginally to ₹12,075 crore. The company described these charges as an extraordinary item. Revenue in the September quarter stood at ₹65,799 crore, up 3.7% from the June quarter. In constant currency terms, this represents growth of 0.8%, slightly below analysts’ estimates. A CNBC survey estimated the company’s profit at ₹12,528.3 crore and revenue at ₹65,114 crore.

The company’s CEO had announced the layoff plan two months ago.

TCS’s ₹1,135 crore restructuring charge against its CEO K. This comes two months after Krutivasan’s statement to Moneycontrol in which he said the company would be cutting 2% of its workforce. This means that the company is planning to lay off around 12,000 employees this financial year. The company is gradually reducing the number of middle and senior level employees. This move has created panic among the employees, which is impacting the entire IT industry.

Employee unions claimed large numbers of layoffs

TCS employees and IT employee unions claim that the actual number of retrenched employees is much higher. They allege that many employees are being asked to resign voluntarily to reduce the number of layoffs. Several employee unions have been protesting against the move for the past few months, including All India IT & ITES Employees Union (AITEU), Forum for IT Employees (FITE) and Union of IT & ITES Employees (UNITE).