Many issues came up. The recent plunge in the Sensex. Talk of an imminent recession in the US. The news that recently IBM had sacked 700 fresh employees in India. Falling profit levels. Tighter budgets. More difficulty in attracting ( and paying for) best talent etc etc.
Listen, the IBM and the TCS cases are different. Firstly, TCS has fired 500 people for poor performance. They were relatively at the bottom of the pile following the performance review process. Secondly, they aren’t a relatively small company which has fired 500 out of 1000 people. These 500 constitute 0.5 % of their huge ( and growing) employee strength of 1,08,000 people worldwide.
Things have got compounded because recently TCS announced a 1.5 % reduction in employees pay since as an organization, they fell short of their Economic Value Add target.
In the mean time, and there probably is no connection whatsoever because I think he did a great job in TCS, “Paddy” Padmanabhan, Global Head for HR moves to Tata Power as the Executive Director, Operations. His replacement in TCS as Global Head of HR : Ajoyendra Mukherjee, VP and Head of Operations for the Eastern Region.