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TCS is reducing its headcount as the focus shifts towards efficiency.

TCS Delays Onboarding Of Experienced Hires By 3 - 4 Months

Tata Consultancy Services (TCS), India’s IT behemoth, is undergoing significant changes, with headcount falling for the second consecutive quarter and campus hiring plans hampered by uncertainty. While the company maintains confidence in its talent strategy, the shift raises concerns about its future direction.

TCS reduced its employee base by 5,680 in the three months ending December, bringing the total to 6.03 lakhs. This follows a comparable drop in the previous quarter. The company attributed the reduction to maintaining efficiency in a’reduced demand’ environment, implying voluntary attrition rather than layoffs.

However, the future of campus hiring remains uncertain. Unlike previous years, TCS has not set a target for freshers in the upcoming fiscal year. In a media report, CHRO Milind Lakkad stated that the number will be determined by the ‘overall situation’ and their focus on efficiency, leaving the door open for additional headcount reductions.

Despite the reduced headcount, TCS remains confident in its talent strategy. In a media report, Lakkad emphasised the importance of upskilling and internal talent development, highlighting training programmes for Generative AI and other emerging technologies. Furthermore, the company intends to pay 100% variable pay to 70% of its employees, including junior and mid-level positions, indicating strong financial performance.

TCS’s changing landscape offers both challenges and opportunities. While the company’s headcount decline and uncertain hiring plans raise questions about its growth strategy, its emphasis on upskilling and strong financial performance provides a positive outlook. The next few quarters will be critical in determining how TCS navigates these changes while maintaining its position as an IT industry leader.


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