New Delhi (PTI): Within days of cutting salaries of its employees, the country's largest software exporter TCS has shown the doors to 500 employees after their performance was found wanting.
Tata Consultancy Services, which employs over 100,000 workers, has said it would cut 1.5 per cent from employees' salaries in the fourth quarter, as it fell short of certain financial targets following a sharp rise in the value of rupee against dollar and the slowdown in the US economy.
"Employees with experience of two years and above across the company who were unable to meet the performance requirements of our company are asked to look for other jobs commensurate with their abilities," TCS spokesperson Pradipta Bagchi told PTI.
He, however, asserted that no employee has been sacked or fired. As a policy, the only time when TCS dismisses people is for disciplinary reasons, he added.
The company had said that the salary cut would be in the variable component, which accounts for 30 per cent of the total pay of the employee.
In the third quarter ended December 31, TCS' net profit rose 18.86 per cent to Rs 1,326.67 crore from 1,116.1 crore a year ago, while total income increased 23.04 per cent to Rs 6,041.98 crore from Rs 4,910.53 crore a year ago.
The rupee has risen more than 12 per cent in 2007 against the US dollar, leaving software firms to battle the impact as a majority of their revenues come from America.