Amid one of largest headcount drops, TCS rethinks 25/25 strategy, ends WFH

In Q2 of FY24, TCS observed a reduction of over 6,300 in its total employee count

Tata Consultancy Services (TCS) is reconsidering its popular 25/25 work model strategy as it calls employees back to office five days a week. The company’s management said that 70 per cent of employees have already returned to office, underscoring the importance of aligning with the company’s values and work culture.

“Many have returned over the past three years. We want to ensure employees understand our values and work culture. We will continuously evaluate our models and adapt according to what works best for clients and employees,” said Milind Lakkad, chief human resource officer, TCS.

Lakkad also mentioned that this mandate would be enforced by business unit heads, bringing teams back to office.

“We pioneered the work-from-home strategy during the pandemic. We have the tools to adapt and are encouraging our employees to return to office. Almost 70 per cent of our employees have already done so,” said N Ganapathy Subramaniam, chief operating officer and executive director, TCS.

The company introduced this strategy during the pandemic, intending for all employees to spend just 25 per cent of their time in office by 2025.

In the second quarter of 2023-24 (FY24), TCS saw a decrease in total headcount by over 6,300 as it recalibrated its employee additions. This marks the second time the company has observed a decline in its headcount.

In the third quarter of 2022-23 (FY23), TCS headcount dropped by 2,197 employees. This decline occurred despite a reduction in attrition rates.

For the quarter, the firm’s attrition rate stood at 14.9 per cent, down from 17.8 per cent in the first quarter of FY24.

The company attributes the decrease in headcount to its recent hiring efforts.

In 2021-22, TCS hired approximately 100,000 freshers, followed by an addition of nearly 44,000 freshers in FY23.

For FY24, the company has set a target of 40,000 freshers, a commitment it intends to fulfil.

“We have been onboarding freshers. However, the exact numbers vary each quarter. While there might be delays in onboarding freshers by a quarter or two, we will honour all the offers,” said Lakkad during the press briefing.

TCS also announced the completion of its investigation into the bribes-for-jobs scandal.

K Krithivasan, chief executive officer and managing director, TCS, confirmed that necessary actions were taken against the involved employees.

“Our investigation is complete. We have taken appropriate actions against those we believe violated our code of conduct. The actions taken varied based on the nature of the violation, but all cases have been resolved,” he added.

A total of 12-14 employees faced disciplinary actions.

Lakkad clarified that the investigation covered four categories: organisation, processes, technology, and people, and these findings have been thoroughly documented.

Back to office
 

Employees need to be in office for 5 days a week
 

TCS saw its steepest fall ever in headcount at over 6,300 in Q2
 

Attrition stood at 14.9%