Tata Consultancy Services (TCS) will be rolling out wage hikes for about 80 per cent of its workforce, covering mid to junior levels, news agency PTI reported.
The announcement comes at a time when India's largest tech giant is planning to lay off about 12,000 employees this year. TCS CHRO Milind Lakkad and CHRO Designate K Sudeep informed employees via email on Wednesday that the salary hikes will take effect from September 1. "We are pleased to announce a compensation revision for all eligible associates in grades upto C3A and equivalent, covering 80 per cent of our workforce. This will be effective 1st September 2025," says the email seen by PTI. The email goes on to say: "We would like to thank each one of you for your dedication and hard work, as we build the future of TCS together." The extent of wage hikes could not be immediately ascertained. When reached for comment, the company in a statement said: "We can confirm that we will be issuing wage hikes to around 80 per cent of our employees effective 1st September 2025." The move to reward and retain talent comes at a time when TCS has decided to lay off over 12,000 employees as part of what it describes as a broader strategy to become a "future-ready organisation". This entails focus on investments in technology, AI deployment, market expansion, and workforce realignment, according to the company. "TCS is on a journey to become a future-ready organisation. This includes strategic initiatives on multiple fronts, including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure, and realigning our workforce model," the company had said last month as the news of layoffs shook the IT industry. "Towards this, a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organisation whose deployment may not be feasible. This will impact about 2 per cent of our global workforce, primarily in the middle and the senior grades, over the course of the year," TCS had then said. The recent layoffs at TCS have sparked broader discussions about whether the IT industry is on the brink of a significant reset. This comes amid global macroeconomic headwinds, the dampening impact of steep US tariffs on outsourcing sentiment, and the growing disruption caused by AI technologies. India’s leading IT services firms posted only single-digit revenue growth in Q1 FY26, wrapping up a subdued June quarter. Macroeconomic uncertainty and geopolitical tensions have slowed global tech demand and delayed key client decisions, adding to the sector's challenges.
