500 TCS Employees resign

Soon after the news of variable pay cut, comes the news of Tata Consultancy Services showing the door to 500 employees. However the company maintained, there had been no layoffs and the number of people asked to leave was not exceptional this year. According to TCS CEO, Ramadorai "There is no layoff.. people are leaving the company due to natural attrition. There are some non-performers who have been given sufficient time to look for alternative employment and company helped them in finding it."

TCS spokesperson Pradipta Bagchi further explained, "This is not an exceptional thing, it happens every year and it is part of our annual performance exercise. In TCS, everyone has to go through an appraisal cycle where they are rated between 1 and 5 depending on their performance. If in one appraisal cycle anyone is rated below 2, we put them on PIP (performance improvement plan).Under this they are given extra training. Even after this if their rating is below 2, then they are asked to look for other jobs."

Signs of a slowdown in the US economy and rising rupee are being blamed for building up pressure on margins and revenues of the IT companies which have enjoyed a gold run in recent times. Is it a sign of things to come in the future?