500 TCS Employees Asked to Leave After Appraisal

Tata Consultancy Services Ltd (TCS) has asked about 500 of its employees to look for another job (i.e. resign voluntarily) as they did not meet the performance requirements of the company. In last quarter, TCS appointed 4,037 employees, taking its total headcount to 108,229.[via reuters]

Companies like Infosys also has a similar policy, but employees are asked to leave only after giving them more time to improve and evaluating them with various criteria on a regular basis using Personal Improvement Programmes.

Does this imply that the recruitment process of TCS is not up to the mark? Due to the shortage of human resources, are they just recruiting freshers from college without conducting good tests and interviews? This issue could either be classified as low quality of the new generation engineers or low quality of the TCS recruitment process? Either way, this could affect the career of those employees.


  1. i’ve had my pure for per week now and i still dont know what to do… like altering the message alert tone to no matter i would like it not simply the essential ones on the phone… all the pieces about this cellphone is complicating.. i also wanted to change to that android software as a result of windows is too gradual and somebody please assist me how to do this

  2. Totally agree with Ranga. Heard the same from many of my friends working in TCS at manager levels. Came to know from them that ,not only people with a rating 2 were being removed from TCS, but also people with 3/5 and 4/5 rating are threatened and some are also being removed, if they happened to be on bench for more than 60 or 70 days (??). So, performance is not the yard stick at all, unlike what is being claimed by the TCS Higher Management. The worst part, i came to know was that if somebody goes on maternity leave she is bound to get a 2/5 or 1/5 and automatically she comes under the TCS layoff RADAR, unless she has some god father to take care. So, women employees of TCS be wary, if you want to go on procreation business. Another news, i came to know is that there is nothing called councelling or probation for the so called non-performers which TCS claims.

  3. Lets Look at next step :
    So if forced to resign then whats the best option from an employee perspective.
    Get termination letter and avail benefits and open to claim/apeal or resign and take graceful exit.

  4. I have been laid off from TCS

    I have been working in TCS Bangalore from the past 6+ years. I have been asked by Regional head of HR to resign with in one week. The reason being I had received a 2 rating in a scale of 5 in the year 2005. I am entitled to one month basic upon submitting resignation.

    My question is, is it not unfair for a person who has servered the company for 6+ years to be seperated without any severance package? I think they have to give atleast 1 month basic for every year of service.

    This layoffs is happening suddenly from last week without any notice. In late Dec 2008 they have introduced a Performance Improvement Program, which says that people with 2 consecutive ratings of 2/5 should be put under 3 months probation and then seperated if no improvement is shown no where there is a policy in the company stating that people with a 2/5 rating in any of the pervious years should be removed.

    What is actually happening is that the HR head of Bangalore(BBS) sends a mail from his official ID or calls from his mobile and asks people to meet him at his chamber. Upon reaching there he threatens the employees with dire consequences if they do not resign within one week, he says that if they dont resign they will be terminated and no other company would hire them with a termination record.

    Many associates in the experience bracket of 3-8 years experince have been forced to resign already. Also heard unofficially that thousands may be sacked the same way.

    This is pure layoff of senior staff to put in freshers in their place. Aren’t the people being layed off entitled to severance package so that they can sustain till they get another job is got in this slowdown.

  5. Guess who is heading IBM, India now? Rajesh Nambiar, who joined IBM recently, from TCS. No wonder both TCS and IBM has a similar layoff style-decisions probably made with recession forecast.

  6. Thats really bad step from TCS, we can never expect such a step from TCS. It was considered as government job, but it changed its moral.

  7. Last week, The Economic Times reported that IBM had dismissed 700 entry-level trainee programmers across India based on their performance in aptitude tests. IBM officials didn’t officially confirm the number but acknowledged they were exploring new ways for employees to certify their skill levels.


  8. Basically they are trying to save on expense.
    I read on the TOI site …

    NEW DELHI: Country’s largest software exporter TCS plans a 1.5 per cent cut in salaries of its over one lakh employees in the fourth quarter, as it fell short of certain financial targets.

    Currently, the company offers a two tier pay package consisting 70 per cent fixed and 30 per cent variable pay. The variable has two components — company and individual performance.

    The company’s Economic Value Added (EVA) for the third quarter was slightly short of target, which has forced it to cut down the salaries, TCS General Manager (Corporate Communications) Pradipta Bagchi said.

    “The cut down is just a small adjustment as against the total compensation paid by the company before starting of the third quarter,” he said, adding that a combination of various factors including rupee appreciation led to shortfall in the target.

    So they are trying to save for the next Q as they wont be making much according to current market.

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