BENGALURU: TCS has rolled out a tiered severance package for about 12,000 employees, primarily affecting mid- and senior-level executives. This move is part of a major workforce realignment as the company ramps up investments in AI, data, and cybersecurity, while phasing out roles that cannot be redeployed within the organisation. The decision has sparked a social media uproar.The severance package extends to employees across levels – from those on the bench or lacking new skills to long-tenured staff with over 15 years of service. Those whose skills became redundant or who did not upskill in line with the company’s evolving technology needs were offered a three-month notice period pay along with a severance package ranging from six months to a year’s salary. The exact payout varied by tenure, with six months’ pay set as the minimum.

To help affected employees transition smoothly, TCS covered outplacement agency fees for up to three months, extending that period for junior associates, sources told TOI. The company also continued its mental health support initiative, TCS Cares, offering funded access to therapists for short- to medium-term counselling. Meanwhile, employees who were on the bench or unallocated for over eight months received the standard three-month notice period pay. For those nearing retirement, TCS offered the option of early retirement with full access to retirement benefits and insurance, along with an additional severance payout ranging from six months to two years’ salary, again depending on tenure. Employees who spent longer years with the company received more generous terms – those with 10 to 15 years of service were given 1.5 years’ pay, while those with over 15 years received two years’ pay as part of their severance.