07-08-2025
TCS layoffs: IT major to raise pay for 80% of staff while cutting 12,000 jobs
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IT bellwether Tata Consultancy Services (TCS) told employees it will raise salaries for 80% of its workforce effective September 1, weeks after announcing layoffs affecting more than 12,000 salary revisions, communicated through an internal email by chief human resources officer Milind Lakkad and CHRO designate K Sudeep, will be for employees in grades up to C3A and equivalent, primarily covering junior and mid-level staff."We are pleased to announce a compensation revision for all eligible associates in grades up to C3A and equivalent, covering 80% of our workforce," the email stated. The IT major has not disclosed the quantum of salary hike comes after TCS had paused its April salary increment cycle, citing macroeconomic uncertainties and weak demand from major markets. Lakkad had said back then that a decision on this front will be made some time during the announcing the April-June quarter results, the company had maintained that it had not taken a call on salary increments yet. The hikes also coincide with TCS's restructuring plan to reduce its global workforce by approximately 2%, mainly impacting middle and senior management positions. The layoffs, the largest by an IT company, are part of what TCS calls its plan to become a "future-ready organisation", focusing on AI deployment and market May, TCS had rolled out 100% quarterly variable pay to 70% of its employees , while the rest received variable pay in a lower range, depending on the performance of their respective business layoffs have sparked a backlash from labour unions, with the Centre of Indian Trade Unions (CITU) planning nationwide protests outside TCS offices on August 19, as per reports. On July 30, the Karnataka State IT/ITeS Employees Union (KITU) also filed an industrial dispute case against TCS before the state's labour department. The union accused the IT market leader of illegal mass retrenchment and sought prosecution of the management for violation of the Industrial Disputes Wednesday, executives of the software giant informed Karnataka's labour authorities that they are not aware of the number of employees their management would lay off in various cities. TCS will now submit its response to a union complaint on labour law violations based on the grievances of affected employees. Officials from TCS and the unions will meet for a second time, for a conciliation, on September 8.
