TCS layoffs reports are 'figments of imagination', says N Chandrasekaran

Tata Consultancy Services CEO and MD N. Chandrasekaran on Thursday dismissed reports on social media that the Indian IT firm was planning large-scale layoffs.

Referring to the company laying off 2,574 employees as per the annual performance review, Chandrasekaran said: "It is a global (average) number. Other numbers are just a figment of imagination."

For the past few weeks, social media was abuzz with reports that TCS might lay off 25,000 employees because of "underperformance."

On Wednesday, TCS said in a press statement that it "has not initiated, and is not planning to initiate, any large scale exits of any section of its staff in any part of the organisation."

A day before, the IT firm explained its position on Twitter. Chandrasekaran, who was speaking after announcing the company's third-quarter results, expressed his bullish view on India.

"I am optimistic. Indications from customers are positive. Momentum is good in key business areas…. Pipeline is good. Service mix registers continuous improvements. India will continue to grow from here," he said, adding that his estimate is based on customer feedback and not on research reports.

He said that the employee layoff is based on performance evaluation by the human resources department.

"I joined the company as a trainee. I have gone through the same process until now. We are sensitive to these issues… This has created a lot of noise. Maybe it's our communication failure," Chandra said.

After reports of the TCS layoffs, various trade unions like the Centre of Indian Trade Unions, All India Trade Union Congress, New Democratic Labour Front (NDLF) sprang into action and came out in support of TCS employees.

A small group called the Forum for IT employees also voiced its concerns on the issue.

TCS said performance appraisals and associated processes are an integral part of the company's operations.

The involuntary attrition for the first nine months of this year has been 2,574 employees, which represents 0.8 per cent of the total employee strength.

The statistics for financial year 2013/14 and 2012/13 were 2,203 and 2,132, respectively.

The total involuntary attrition for the current fiscal year will be around one per cent, a TCS spokesperson reportedly said. On Tuesday, the Madras High Court restrained TCS from retrenching an employee.