Tata Consultancy Services (TCS) HR head Sudeep Kunnumal has addressed concerns about potential layoffs at the company. During the Q2 earnings call, Kunnumal stated that TCS is not aiming to cut a specific number of jobs, but rather will evaluate each employee individually. This comes after the company announced a 2% reduction in its workforce, with approximately 1% already completed. The remaining 1% will be evaluated on a case-by-case basis, with the company looking to redeploy employees where possible.
Kunnumal emphasized that the company will not be “chasing a target” when it comes to job cuts, and that the evaluation process will take into account the significant investments made in employee learning and development. He also clarified that the company will continue to evaluate employees and make decisions on a individual basis, rather than aiming for a specific number of layoffs.
In addition to discussing layoffs, Kunnumal also addressed the new H-1B visa rule announced by the Trump administration. He stated that TCS has significantly localized its workforce in the US, with only approximately 500 associates having traveled to the US on H-1B visas. He expressed confidence that the company’s business model will be able to adapt quickly to any changes in immigration policy.
The company has also announced a wage hike for over 80% of its workforce, effective from September 1. This move is seen as a positive step for employees, and is likely to help improve morale and retention rates. Overall, TCS appears to be taking a cautious and considered approach to managing its workforce, with a focus on evaluating employees individually and making decisions that are in the best interests of the company and its employees.
It’s worth noting that the IT industry is facing significant challenges, including changes in immigration policy and increasing competition for talent. TCS’s approach to managing its workforce will be closely watched by investors and industry analysts, as the company navigates these challenges and seeks to maintain its position as a leading IT services provider.