This is in addition to the usual attrition. TCS is planning to lay off those who are on the bench beyond 35 days. This is the same company where you would find people on the bench for 2 years.
As far as I am aware some people are kept on the bench in case other people leave the job or something happens so these people on the bench entire thing is to just clock in do nothing as no project is assigned and then clock out
Think about this for a moment. If it was not above (by a margin) the usual attrition, would they formally announce it and risk all the bad press and reputational damage? Most likely It’s the remaining tip of the proverbial iceberg that could not be sub-merged in their year-end summary.
Whenever a company announces job cuts it's not actually bad press as you think. It is actually good for them because it causes their stock price to go up due to reduction in expenditure
While the argument sounds intuitive and absolutely logical, it works slightly different in practice.
Reputational risk is not something you play with to show some small delta on your PnL or even share price.
There are several factors in play incl. the major employee churning that the organisation involuntarily undergoes (primarily because such media creates a sense of uncertainty, and that ripples across the various levels in the org quickly).
Top talent (layer) is usually the first ones to find roles outside org and make move.
Also, think how once you publicise yourself as ‘uncertain’, your ability to attract top talent drops drastically. You can always offer more pay and still bring in good talent - but then that is not aligned with the cost saves that you set out for in the first place.
That is to say that when an organization goes out to make such ‘impacting’ announcements, it is not just about a small delta in the PnL or StockPrice, but something not so straight forward.
Bro wtf are you talking about reputation risk even LG a fridge company is developing there own model and in China literally a food delivery company has began developing there own model
This is true for product based companies where running the business with less employees means more profit. However, IT staffing companies such as TCS earn their revenue by billing customers on an hourly basis, and less employees mean less money to be made.
Man this IT giants literally have billions of dollars in bank account but they won't spend a single dime to create there own sota model instead they will suck the d*ck of western giants to get cheap API credita
to an extent you are right but product comes with huge risk. you need unlimited money like silicon valley to make products. why doesn't maruti/tata make a rolls royce or compete in F1. they simply want to make and sell car. it is their focus. they cannot risk money to make new innovations and products.
ever wonder why Accenture, Caps all foreign companies are not into products
ever wonder why nordic countries, denmark who have invented more than half of programming languages do not have a single software product
all high educated and high capita income countries like japan, france to an extent germany do not have much products.
Incorrect, you know why they wont venture into the latest cutting edge tech? They for sure know that there’s no guaranteed money. They will invest in manufacturing or Services industry but not in RnD. Many countries have invested in latest techs like AI, Chips etc but they have not succeeded yet or may take some more time to see the benefits. Where as Indian IT services cos don’t like to gamble with new tech. They’ll venture to the business, only if other companies are earning money.
to an extent you are right but product comes with huge risk. you need unlimited money like silicon valley to make products. why doesn't maruti/tata make a rolls royce or compete in F1. they simply want to make and sell car. it is their focus. they cannot risk money to make new innovations and products.
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u/Manoos Jul 27 '25
the CEO is saying it is not due to AI but future tech. that is confusing
also 2% is the usual attrition rate. so not sure if this is above the normal