Well, showing the door for 1% of its workforce for a large MNC like TCS maynot be a big issue as per the World Business Standards - but it sure is for the Indian IT Market. The cause could be easily attributed to the rising rupee vs the US dollar that has been building up the pressure on margins and revenues. Another factor that has been bothering most Indian IT companies is the signs of a slowdown in the US economy, the largest spender on IT systems and outsourcing.
TCS shrug off the layoff issue terming it as "not an exceptional thing". It says that it has an internal policy to review staff performance twice a year where staff are rated on a scale of 1 to 5. Staff with low scores( 2 or less) are either asked to re-train or are sent for counselling depending on their role. Staff who are still unable to meet the performance requirements are asked to find work elsewhere.
Just a sign of how the IT market is heading!!