In a recent development at Tata Consultancy Services (TCS), an employee's protest has brought attention to the company's leave and salary policies. Sourabh More, a TCS employee, took an unusual step by camping outside the company's Pune office to protest against what he claims is an unjust suspension of his salary.

Employee's Grievances

More alleges that TCS withheld his salary for several months, a situation that he says forced him to resort to sleeping on the footpath. The employee reported that upon returning to the Sahyadri Park office on July 29, he found his ID had been deactivated. Despite assurances from the Human Resources department regarding payment, More stated that his salary remained suspended.

Company's Response

TCS has addressed the situation, stating that the salary suspension followed standard company procedures. According to the tech giant, the action was taken due to More's unauthorized leave of absence.

Ongoing Resolution

In response to the protest, TCS has taken steps to address More's situation:

1. The company has provided accommodation for More.
2. TCS is actively working to resolve the issues raised by the employee.
3. More has requested reinstatement, which the company is considering as part of the resolution process.

This incident highlights the importance of clear communication between employers and employees regarding leave policies and salary procedures. It also underscores the potential consequences of unauthorized absences in the corporate world.

As the situation continues to unfold, it remains to be seen how TCS will balance its standard procedures with employee concerns, and what long-term changes, if any, might result from this high-profile protest.

Tata Consultancy Services (TCS), India's largest IT services company, saw its shares plummet to a 52-week low of ₹3,041.20 on the stock market today. The stock was trading down 1.10% at ₹3,045.30 following the company's announcement of a significant workforce reduction.

Massive Layoffs Announced

TCS revealed plans to lay off approximately 12,200 employees, which represents about 2% of its global workforce. The layoffs are primarily targeting mid and senior-level employees, citing a mismatch in skills and challenges in redeploying staff despite reskilling efforts.

Stricter Performance Metrics

In response to changing market dynamics, TCS has implemented more stringent performance metrics for its employees. The new guidelines require:

• 225 billable days annually
• Bench time capped at 35 days

These measures aim to improve efficiency and utilization rates within the company.

Market Pressures and Revenue Shortfall

The layoffs come as TCS faces pressure from weak macroeconomic conditions and shifting client demands towards AI, cloud, and next-generation technologies. In its recent quarterly report, TCS posted revenue of ₹634.30 billion, falling short of consensus estimates of ₹646.50 billion.

Management's Perspective

TCS management emphasized that this move is a strategic realignment rather than AI-driven cuts. The company aims to maintain competitiveness in an environment characterized by tighter client budgets and softening demand for traditional IT services.

Market Volatility

The news has contributed to increased market volatility, with India VIX (Volatility Index) rising nearly 7%. This surge reflects heightened investor nervousness about broader challenges facing the IT sector.

As the tech industry continues to evolve rapidly, TCS's actions highlight the ongoing need for companies to adapt to changing market conditions and client expectations. The impact of these layoffs on TCS's long-term performance and the broader IT sector remains to be seen.