Letter as received by a TCS employee, who was fired this month:
Source: Reddit India
Information coming in from TCS (and this letter) indicates that mid-level managers and consultants are being targeted for mass layoffs, which was never seen in TCS in recent history. AST or Assistant Consultants with Band D, who have shown little or no improvement in the last 2 years, along with ASOC (Project Managers) who are band C and above, and other middle to higher level managers are those which are in the firing line.
A,B,C,D and E are internal rating system used by TCS, with A being the best and E worst.
Employees and tech observers are actually surprised with such mass layoffs, considering that TCS is known for ‘job security’. The case become more curious considering that TCS has plans of hiring 35,000+ freshers for 2014-15 session.
A TCS spokesperson recently said: “We continue to be leading recruiters of IT talent across the world, not only in India. In this fiscal year, we have a total hiring target of 55,000 professionals and we are on track to meet it.”
Some employees, on condition of anonymity, revealed that TCS plans to fire mid-level managers who are drawing fat packages and underperforming, and replace them with low-cost freshers and train them. Although this is a common practice in more of the IT services companies, firing 25,000-30,000 employees is certainly not normal.
Infact working conditions at TCS are so good that it experiences lowest attrition rates compared to other IT companies, and maybe this can be the reason that ‘old horses’ are being removed in order to shuffle the talent cards.
Another source informed us that broadly speaking, all those employees with more than 8 years of experience (with $70-100 / hour billing rates) and with no assigned projects are immediately fired. Infact, if we believe this source, then there is no issue of projects with TCS; but with costs-cutting as they have decided to get away with ‘excess fat’ and hire freshers on a mass scale to ‘keep the balance’.
Scary situation indeed.
Here are some articles people say about TCS:
I am a TCS employee.
I have saw a letter to resign from TCS to an employee in WhatsAp. Now and then there are rumours there from a specific project hundreds of senior employees are asked to resign else TCS will have to kick them.
However, till now (19th Dec) there is no solid proof TCS is doing this.
Edit: Just I found out that 500 associates with AST designation and above which are
1. neither working on any project nor
2. have good performance (Band D) asked to resign.
List for associates in Mumbai has also come. List is going to be disclosed on next few weeks.
I quit TCS a few months ago (I was there for 6 years) and this what I know : If you are in BPO,they will not fire you easily but move you to another project or RMG .In fact,as per my observation TCS is one of the companies that gives multiple chances even to the poorest of performers hoping that they might perform eventually (not necessarily an admirable trait for a company as it alienates the top performers but keeps a lot of people happy ).
If you are in in IT and out of project temporarily,you will be in bench(RMG) and your variable pay component will go down drastically (proportionate to the number of months on bench).Since IT companies pay very less basic compared to variable pay,you will eventually be frustrated with your pay and move out. TCS is increasing its numbers in a huge way to meet outsourcing needs.Most of these jobs don’t require a lot of expertise,so a lot of senior employees with hefty pay packets might be labelled “poor performers” and moved out.If you have the skills and expertise,you should not worry about getting fired in the first place.