TCS grapples with top talent erosion

TCS, with 13.5% attrition in the December quarter, once had the lowest attrition rate among peers. But the gap has narrowed.

- Jas Bardia & Varun Sood

Tata Consultancy Services Ltd (TCS) was long revered as one of the safest private-sector employers.

But layoffs driven by an artificial intelligence (AI)-powered upheaval and deep cuts to variable payouts have shaken confidence, sparking an unprecedented exodus at the top.

At least 300 of 1,800 senior executives have quit India's largest software services provider in eight months through 31 March, representing at least 16% churn among senior ranks, the highest since the company went public in 2004, according to three executives familiar with the exits. This category witnessed 4-5% annual churn earlier, they said.

Executives with over two decades of experience, including principal consultants, vice presidents, and senior vice presidents, have resigned during this period, said the people who didn't want to be identified.

Mint could not independently determine how many of these 300 executives were among those laid off. TCS had kicked off its largest job cuts, removing 12,000 executives or 2% of its workforce, as AI disrupted India’s $297-billion technology services outsourcing industry.