80% of Tata Consultancy Services employees to get pay hikes starting September 1, even as the company plans to cut 12,000 jobs this year.
Despite ongoing job cuts, Tata Consultancy Services (TCS) has announced salary hikes for 80% of its workforce, covering junior and mid-level roles. The hikes will take effect from September 1, 2025.
In an internal email, CHRO Milind Lakkad and CHRO Designate K. Sudeep said:
“We are pleased to announce a compensation revision for all eligible associates in grades up to C3A and equivalent. This will cover 80% of our workforce and will be effective 1st September 2025.”
The company thanked employees for their dedication as it works toward building a future-ready organization.
Layoffs Continue for Senior Roles Amid Restructuring
TCS also confirmed that around 12,000 employees, mostly from mid to senior levels, will be let go over the year. This move is part of a larger workforce restructuring plan aimed at aligning the company with future business goals.
“We are releasing associates whose deployment may not be feasible,” the company had earlier said.
This accounts for about 2% of TCS’s global workforce.
Why TCS is Restructuring: Key Focus Areas
TCS is undergoing a major transformation to become a future-ready organization. The company’s focus areas include:
- Investing in AI and emerging technologies
- Expanding into new markets
- Building next-gen infrastructure
- Reskilling and redeploying staff
- Realigning workforce structure
Industry Trends: Big Tech, Big Changes
TCS isn’t alone in facing challenges. The broader IT industry is seeing a slowdown due to:
- Global economic uncertainty
- Geopolitical tensions
- AI disruption and automation
- Client delays in project decisions
In Q1 FY26, India’s top IT firms reported single-digit revenue growth, reflecting this cautious environment.
Final Take: TCS Bets on Talent Retention and Tech Investment
While 12,000 job cuts mark a significant move, the pay hikes signal TCS’s intent to retain and motivate key talent during uncertain times. The company appears to be balancing between cost-cutting and employee retention as it gears up for long-term growth.
