TCS Job Cuts Update: HR Head Clarifies Situation Amid Speculation

Amid rising concerns over layoffs at Tata Consultancy Services (TCS), HR Head Sudeep Kunnumal has clarified that the company has no fixed target for job cuts. He also addressed the impact of recent H-1B visa changes, downplaying any major effect on the company’s operations.

No Fixed Layoff Target, Attrition Explained

During TCS’s Q2 earnings call, Kunnumal responded to questions regarding the recent 3% decline in headcount—approximately 20,000 employees. He stated that this reduction is a combination of voluntary and involuntary attrition, rather than a pre-set layoff target.

“The 20,000 headcount reduction is a result of voluntary and involuntary attrition. We announced a 2% reduction target, and we are currently at roughly 1%. But we don’t have a fixed target,” Kunnumal said.

He added that TCS will continue evaluating its workforce, especially after significant investments in employee learning and development:

“We are not chasing a target. We'll continue to evaluate everyone after all the investment in learning and development that we've done.”

Involuntary Attrition May Continue

When asked whether involuntary attrition would stop at the current 1% mark, Kunnumal clarified that TCS estimates it could reach 2%.

“We will continue to evaluate people whom we can redeploy. Those who cannot be redeployed will be released,” he said.

Minimal Impact from H-1B Changes

The US government recently introduced a $100,000 annual fee for H-1B visa applications starting September 21. Kunnumal noted that TCS has already localized much of its US workforce, limiting reliance on H-1B visas:

“Approximately 500 associates have traveled to the U.S. on H-1B. Our business model can adapt quickly to any changes in immigration policy.”

Positive Development: Wage Hike

TCS announced a salary increase effective September 1, covering over 80% of its employees, offering reassurance amid layoffs speculation.