TCS New Bench Policy Sparks Panic Among Employees – What’s Behind the Growing Fear of Layoffs

TCS introduces a strict 35-day bench policy, triggering anxiety among tech employees about potential layoffs. Explore what this policy means, employee reactions, and expert insights on the future of IT workforce management.

TCS New Bench Policy Sparks Panic Among Employees – What’s Behind the Growing Fear of Layoffs

India's largest IT services company, Tata Consultancy Services (TCS), is facing internal unrest after implementing a new bench policy from June 12, 2025. While the company calls it a structured deployment model, many employees see it as a signal of looming job losses.

What Is TCS's New Bench Policy

Under the new policy, TCS employees are allowed a maximum of 35 working days in a year without being assigned to a billable project. For the rest of the year, they are expected to be actively deployed and billable for at least 225 business days. Not meeting this requirement may affect their career growth, compensation, and job stability.

• Reduction in pay and variable incentives

• Delay or denial of promotions

• Loss of chances for overseas assignments

• Risk of job termination

Why Are Employees Worried

The 35-day limit has created a wave of stress and anxiety across TCS. Employees say they are being forced into roles that do not match their skills or training, just to stay off the bench. Some claim they are being asked to take up support roles far removed from their Java or Python training.

One new recruit shared online that within a month of joining, they were pushed to accept a role in a completely unrelated domain. Several others have voiced concerns on social media platforms like Reddit, fearing this policy is a masked route to mass layoffs.

One employee commented
This is the first step towards employment rationalisation based on utilisation. Brace for layoffs

TCS Management’s Stand

TCS CEO and Managing Director Krithivasan defended the policy. He said the idea of employees taking ownership of their deployment is not new. The company has always expected its employees to proactively seek new projects after completing their previous ones.

What has changed now, he said, is that this expectation has been given a clear structure. Project assignments are based on client needs, and while employee preferences are considered, they cannot override business priorities.

Krithivasan also clarified that the company invests in employee training and aims to align them with demand. However, if gaps in skills exist, employees must address them through learning and upskilling.

Industry Perspective

Experts believe this policy reflects larger trends in the IT industry. The sector is undergoing major changes driven by automation, artificial intelligence, and a slowing global economy. Companies are under pressure to manage margins, and tighter utilisation is one way to achieve that.

Pareekh Jain, CEO of EIIRTrend, observed that companies are becoming stricter with bench policies to manage costs and improve efficiency. Nitin Bhatt, Technology Sector Leader at EY India, said the move pushes employees to remain relevant by developing high-demand skills in fields like AI, cybersecurity, and digital engineering.

They agree that future promotions and raises will likely depend more on skills and competencies than tenure or grade.

Employee Reactions Mixed

While many employees are against the policy, some support it. They argue that it will help TCS weed out employees who deliberately remain on the bench and avoid taking up challenging assignments. According to some voices online, this could bring discipline and a performance-driven culture into the organisation.

One user wrote
This may help TCS trim some seriously underperforming resources

Concerns Raised by NITES

The Nascent Information Technology Employees Senate (NITES), an employee welfare group, has criticised the policy as harsh and damaging to the mental health of tech professionals. In a letter to Union Labour Minister Mansukh Mandaviya, NITES called the policy exploitative and inhumane.

According to the letter
These are not non-performing employees but skilled professionals who find themselves temporarily without allocation. Instead of support, they are met with suspicion, coercion, and threats

NITES also alleged that employees are being threatened with termination or denial of experience letters if they do not meet the unrealistic 35-day allocation deadline.

Why Is TCS Introducing This Now

Several factors have triggered this move

• Global economic slowdown is affecting IT demand

• AI is automating many routine tech roles

• There are delays in project ramp-ups and mismatches in employee skills and locations

• Companies are focusing on margins and profitability

Even HCL Technologies recently reported a fall in utilisation due to delayed ramp-ups and demand-supply mismatches.

In this backdrop, bench policies are being redefined to ensure that only those who contribute meaningfully are retained.

What It Means for TCS Employees

TCS employees are now required to take responsibility for their deployment. During the bench period, they are expected to actively connect with Resource Management Groups, respond quickly to opportunities, and be ready to accept roles that may not always match their ideal job description.

The company also expects mandatory upskilling to close any gaps in demand and training.

While these may sound like rational steps from a business standpoint, for many employees, it has led to job insecurity, mental stress, and concerns about forced role changes.

Author’s Note

The IT industry is evolving fast, and policies like these are a reflection of that shift. While companies like TCS need to manage cost and efficiency, it is equally important to ensure that employees are not treated as disposable resources.

A balance must be maintained between performance expectations and empathy. Employees are the backbone of the industry, and supporting them during challenging periods not only builds loyalty but also ensures long-term success.

TCS has always been a pioneer in Indian IT. How it handles this transition will set an important precedent for the entire industry.

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