Tata Consultancy Services (TCS), India's largest IT services company, has strongly denied social media speculation claiming it had laid off 80,000 employees. The company has clarified its position on recent workforce adjustments, emphasizing a more modest reduction as part of its strategic realignment.

Debunking Social Media Claims

TCS has categorically rejected claims circulating on social media platforms suggesting a massive layoff of 80,000 employees with varying severance packages. The company labeled these reports as "incorrect and misleading," setting the record straight on its actual workforce plans.

Actual Workforce Reduction Plan

While dismissing the exaggerated claims, TCS confirmed its previously announced strategy to optimize its workforce:

• The company plans to reduce its global workforce by approximately 2%.
• This reduction will impact around 12,000 employees, primarily in middle and senior grades.
• TCS frames this move as part of becoming a 'future-ready organisation.'

Workforce Initiatives

TCS emphasized that its workforce optimization strategy involves several key initiatives:

1. Reskilling programs
2. Redeployment efforts
3. Workforce realignment

These measures are designed to enhance the company's adaptability and efficiency in a rapidly evolving tech landscape.

Current Workforce Statistics

To put the reduction in context, TCS provided recent employment figures:

• As of June 30, TCS employed 613,069 people globally.
• The company added 5,000 employees in the June quarter, indicating ongoing recruitment despite the reduction plan.

Industry Context

The workforce adjustments at TCS come amid broader challenges in the Indian IT sector:

• Top IT services companies in India are experiencing single-digit revenue growth.
• The slowdown is attributed to macroeconomic instability and delayed decision-making by clients.

Leadership Change in HR Department

While not directly related to the workforce reduction news, the LODR data reveals an upcoming change in TCS's human resources leadership:

• Mr. Milind Lakkad, the current Chief Human Resources Officer, is set to superannuate on September 30, 2025.
• Mr. Sudeep Kunnumal, previously announced as Chief Human Resources Officer Designate, will take over the role from October 1, 2025.

This leadership transition in the HR department comes at a crucial time as TCS navigates its workforce optimization strategies.

TCS continues to maintain its position as a leading player in the global IT services market, balancing workforce optimization with strategic growth initiatives. The company's approach to addressing market rumors and providing clarity on its actual plans demonstrates its commitment to transparency in corporate communications.

Tata Consultancy Services (TCS), a leading IT services provider, faces scrutiny from the UK's Business and Trade Committee following cyber attacks on three of its high-profile clients. The committee has demanded answers from TCS regarding its role as a service provider in the wake of these security breaches.

Cyber Attacks on Major Clients

The cyber attacks affected three prominent TCS clients:

1. Jaguar Land Rover (JLR)
2. Marks & Spencer (M&S)
3. Co-op

These incidents have raised concerns about TCS's involvement and the security measures in place for its client services.

Committee's Inquiry

The Business and Trade Committee has written to TCS seeking clarification on several key points:

• Service Scope: TCS has been asked to explain the extent of its services to the affected companies.
• Internal Investigations: The committee is requesting updates on any internal investigations conducted by TCS in response to these incidents.
• Contract Details: TCS is required to disclose the number and value of its service contracts, with a particular focus on companies operating in Critical National Infrastructure sectors.

M&S Incident Details

Media reports cited by the committee suggest that the cyber attack on M&S was triggered by a ransomware email sent from a TCS employee's account. This allegation adds a layer of complexity to the investigation and raises questions about internal security protocols at TCS.

Timeline of Attacks

• JLR: The cyber attack began on August 31, leading to production halts that have been extended until October 1.
• M&S and Co-op: These attacks occurred in April, predating the JLR incident.

TCS's Role and Response

TCS serves as a technology partner for all three affected companies. The company has been given until September 29 to respond to the committee's inquiries. The response from TCS is expected to shed light on its cybersecurity measures and the steps taken to prevent such incidents in the future.

Implications for TCS and the IT Services Industry

This scrutiny by the UK trade panel could have significant implications for TCS and potentially the broader IT services industry. It highlights the critical importance of robust cybersecurity measures in an era where digital services are deeply integrated into various sectors, including those considered part of Critical National Infrastructure.

As the investigation unfolds, it may lead to increased focus on cybersecurity practices and accountability in IT service partnerships, potentially influencing future regulations and industry standards in the UK and beyond.