Tata Consultancy to lay off fewer than 40 Cedar Rapids area employees

Tata Consultancy Services says it has successfully transitioned #x201c;many processes#x201d; it managed for Transamerica
Tata Consultancy Services says it has successfully transitioned “many processes” it managed for Transamerica to India. (Rebecca F. Miller/The Gazette)

Tata Consultancy Services plans to lay off approximately 40 employees in and around the Cedar Rapids area.

In a Tuesday email to TCS employees, viewed by The Gazette, company program Director Gayle Cole said “a number of positions that support the Transamerica TPA (third-party administrator) engagement will be ending over the next 60 days.” Affected employees were notified that morning.

The Mumbai, India-based IT company in January 2018 signed a $2 billion deal to manage Transamerica’s life and annuities business and administer more than $10 million of its policies.

Since then, Cole said in the email, the company has successfully transitioned “many processes” to India.

As part of TCS’s future operating model for its Transamerica account, she said, the company is applying a concept it calls “location independence” — ensuring similar duties can be performed across multiple locations in India and the United States.

By early 2020, the layoffs will have affected “less than 40” of the approximately 860 former Transamerica employees who were absorbed into TCS after the deal took place, company spokesman Bill Thomas said.

These employees all work either at at 4333 Edgewood Rd. NE or remotely from home, and in operations roles that are “no longer required” as TCS transitions into a “digital operating model,” Thomas said.


He said any employees laid off will have the option to look for other TCS positions in line with their skill sets, either in Cedar Rapids or elsewhere in the United States based on business needs.

TCS also will continue to hire new employees in the Corridor over the next 12 months, Thomas said.

“TCS remains committed to Cedar Rapids as its third-party administrator insurance hub in the U.S., and to Iowa overall,” he said. “It is also investing in the local community with computer science education initiatives, and will continue to grow its goIT and Ignite my Future in School programs with local school districts, adding to broader community partnerships with local nonprofits.”

TCS is a subsidiary of the Tata Group, a conglomerate that owns businesses in aerospace, financial services, infrastructure, car manufacturing and telecommunications, among other fields.

Tata companies brought in $110.7 billion in total revenue in 2017-18, employing more than 700,000 employees in more than 100 countries across six continents, according to the group’s website.

A primary goal for TCS, Cole said in her Tuesday email to employees, is to acquire new third-party administrator business clients and “replicate for them what we have successfully done with Transamerica.”

She added that “we are not yet in a position to begin work with a new client.”

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