Tata Consultancy Services is seeing a sharp rise in senior departures, with more than 300 executives leaving in the eight months to March 31, according to a Mint report. The departures come at a time when the company is cutting jobs, reshaping its structure and facing growing concerns over compensation.
The magnitude of the attrition is unusual. Mint reported that around 16% of TCS’s top 1,800 executives have come out in less than a year, a big jump from the 4% to 5% annual attrition the company had typically seen at the top levels since its 2004 IPO.
A RARE RECOVERY AT THE TOP
The executives leaving include principal consultants, vice presidents and senior vice presidents, many of them long-serving leaders who had spent years building delivery teams and customer relationships.
This is not routine wear and tear. Historically, TCS has been known for continuity of leadership and long careers, especially at the top. That reputation is now under pressure as the company undergoes the biggest reset of its workforce in years.
Mint said senior departures are occurring alongside a reduction of around 12,000 jobsor about 2% of TCS’ workforce, as the company adapts to a new operating model shaped by AI and tighter customer budgets.
WHY TOP LEADERS LEAVE
People familiar with the matter told Mint that compensation has become a major flashpoint.
Senior leaders reportedly received less than 10% of your variable salary over the past two years, despite taking on greater responsibilities during a period of slower growth and greater delivery pressure. For many, that seems to have been the turning point.
TCS has long attracted and retained talent through brand value, role diversity and career progression rather than top-of-the-market salaries. But that model can quickly weaken when uncertainty increases and bonus payments are reduced.
Executives cited by Mint said the combination of layoffs and low variable pay has hit confidence, particularly among leaders who had hoped for greater clarity and stability.
NUMBERS TELL A WIDER STORY
TCS reported the overall wear and tear of 13.5% in the December quarterand Mint noted that rivals such as Infosys, HCL Technologies and Cognizant published similar figures.
This may seem normal on paper, but the key question is where the wear occurs. When departures increase among entry-level employees, companies can generally absorb the impact. When turnover among senior account and delivery leaders accelerates, the risk to execution and customer trust is much higher.
Mint also reported that TCS generated $22.4 billion in revenue in the first nine months of the fiscal yearand may struggle to match last year’s performance. Its shares have fallen and recently hit a six-year low.
The immediate challenge for TCS is not simply replacing people. It’s rebuilding trust.
Senior managers are the bridge between strategy and execution. They maintain customer trust, advise teams, and absorb operational crises. Losing a large number of them in a short period of time can slow down decision making and weaken continuity at a time when customers are already demanding more production at a lower cost.
TCS still has scale, brand strength and deep customer relationships. But if the company wants to stop attrition, it will need to do more than hire replacements. You will have to clearly answer three questions:
-
What does the new career path look like in an AI-led organization?
-
How will performance and compensation be linked in the future?
-
What support will leaders get as roles are redesigned?
