TCS employees to get pink slips

New Delhi: IT giant Tata Consultancy Services (TCS) is believed to be undertaking a significant performance-related restructuring of its workforce, which may also lead to some employees being asked to leave the company.

Sources said that the restructuring exercise could affect both onsite and offsite positions across various verticals, even as the company said it is on track to meet hiring target of 55,000 professionals this fiscal year.

Most affected by the restructuring drive could be middle to senior-level positions, sources said, while adding that some employees may be offered positions at vendors working with TCS.

The country's largest software exporter with over $13-billion annual turnover employs over 3 lakh people across 46 countries.

When contacted, a TCS spokesperson said, "As a performance-driven company, workforce optimisation is a continuous process which happens throughout the year taking into account employee performance, business needs, and people aspirations."

"This leads to some amount of involuntary attrition in the company. This is nothing out of the ordinary or a special situation for us to comment about," the spokesperson further said.

"We continue to be leading recruiters of IT talent across the world, not only in India. In this fiscal year, we have a total hiring target of 55,000 professionals and we are on track to meet it."

At the end of last quarter ended September 30, 2014, TCS had a total headcount of 3,13,757 following a gross employee addition of over 20,000 people.

Headcount utilisation during the quarter stood at 86.2 per cent, excluding trainees, while the figure after including trainees was at 81.3 per cent.

Net addition stood at 8,326 employees during the quarter, while its attrition rate was 12.8 per cent.

During the July-September quarter, TCS also crossed a milestone of employing one lakh women professionals with a gender diversity ratio of 32.9 per cent.

The company's net profit declined by 5.8 per cent to Rs 5,244 crore in the second quarter of the current fiscal year, while revenue rose by 7.7 per cent to Rs 23,816 crore.