MUMBAI -- India's largest software services provider TCS today said 1,000 jobs have been axed in the country due to non-performance, and said rumours of mass layoffs or restructuring were untrue. Such speculation had circulated on social media yesterday.
Instead, employees will actually earn more because the company is paying out the full bonus this quarter.
The Tata-group company said it carries out performance reviews every year, which result in this "involuntary attrition" and that only 1,000 people were leaving the company this way in India, out of a total of 2,574 worldwide.
"This is a performance exercise. We do it every year, this year also we are doing. Some years we do it at a certain time, some others we do it at a different time. Involuntary attrition at TCS has been about 1 per cent every year in that range and this year, it is no different, " TCS CEO N Chandrasekaran said, addressing media after announcing the company's results. He also said that TCS will give 100 per cent variable pay this quarter.
Ajoy Mukherjee, head of human resources, said that these involuntary attritions have been based on performance review which is equally important, and is part of every organisation. "But we will have to think why all this noise," Chandrasekaran said, and adding that there is no truth whatsoever in any rumour about layoffs or restructuring.
Blaming the social media for the spread of high numbers being floating around, Chandrasekaran said, "It is something for us to think about as there is a learning for us. We have to understand how this social media works when somebody puts up a message, that's some action point we should take as we go forward."
When asked whether TCS would also follow rival Infosys, which had given iPhone 6 models to 3,000 employees, Mukherjee said TCS has a very strong reward system and will stick to that.Suggest a correction