The story of gloom and doom just doesn't seem to end. IT major Tata Consultancy Services [Get Quote] is all set to cut about 1,300 jobs over the next few months, according to an Economic Times report.

The figure constitutes less than one per cent of the company's 130,000-strong workforce. According to the report, a TCS spokesperson reasoned that these employees had failed to meet performance standards.

In TCS's development centres in Chennai, more than 200 jobs have already been axed in the last fortnight, the report said, quoting unnamed TCS employees.

This decision comes close on the heels of the company's CEO S Ramadorai declaring that the company would review the variable pay component and increase the working hours.

Ramadorai had denied reports of immediate job cuts but had said that it might have to if the situation worsened. Employee expenses make up at least 53-54 per cent of TCS's total cost.