Layoffs
TCS has made an announcement of retrenching nearly 12,261 employees, i.e. around 2.0% of its total global work force i.e. 613,069. The majority of the deletions will include those of the middle and senior levels to assist the company adapt to the needs of the business in the future, and to new technologies introduced by artificial intelligence (AI).
Why do we lay people off?
This is against the backdrop of a slowdown in the IT industry, weak hiring activities, and realigning their workforce. Larger investments in upcoming technologies, investments in new markets, and the introduction of AI solutions are some of the ways through which TCS has been dreaming of being a future-ready organization.
Assistance of the unemployed people
The company is going to provide notice period compensation, extra exit benefit, longer health-insurance coverage, helping in career transition, counseling, and assistance in transition period.
Stock trade is
The layoff announcement caused TCS stock to decline by 1.7% to Rs 3,081.20 yesterday and they have plunged 18.0% this year. The market value of the company stands at Rs 11.42 lakh crore, slightly less than that of Bharti Airtel; the price earnings (P/E) ratio of the TCS stocks is 33.5.
Future prospects
Notwithstanding the layoffs, TCS is still upholding its strategic goals, such as further implementing emerging technologies and also enhancing partnerships. According to analysts, there are possible margin pressures and increasing attrition, and this structural change is within the IT industry.
Q1FY26 results
TCS has register a 6.0 per cent year on year growth in net profit to 12, 760 crore rupees and 1.3 per cent rise in revenue to 63, 437 crore rupees.
AI-powered solutions
TCS has established AI centred research and innovations centres and has partnered with Microsoft and NVIDIA to develop AI-native products to a number of industries.
Dividend announcement
TCS declared an interim dividend of Rs 11 per equity stock and the record date is fixed on July 16.
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