Tata Consultancy Companies (TCS) will roll out wage hikes for 80% of its workers beginning September 1—even because it plans to put off round 12,000 employees this 12 months in a sweeping effort to reshape its workforce and future-proof its operations.
In response to a PTI report, the compensation hike was introduced in an inner e-mail by Chief Human Sources Officer Milind Lakkad and CHRO Designate Okay Sudeep on Wednesday. “We’re happy to announce a compensation revision for all eligible associates in grades as much as C3A and equal,” the e-mail learn, thanking workers for his or her “dedication and arduous work.”
Whereas the extent of the hikes stays unclear, an organization spokesperson confirmed the revision within the report, saying: “We can be issuing wage hikes to round 80% of our workers efficient Sept. 1, 2025.”
The announcement comes amid a broader shake-up. TCS is transferring to put off roughly 2% of its world workforce—round 12,000 workers—primarily in mid and senior roles. The corporate says the cuts are a part of its pivot towards changing into a “future-ready organisation,” involving main investments in AI, market enlargement, and new infrastructure.
“As a part of this journey, we may even be releasing associates from the organisation whose deployment might not be possible,” the corporate stated final month.
This dual-track strategy—climbing pay for junior workers whereas trimming senior employees—highlights the shifting priorities inside India’s IT sector, which is grappling with world financial headwinds, U.S. commerce coverage pressures, and accelerating AI disruptions.
India’s high tech corporations, together with TCS, Infosys, and HCLTech, have posted muted single-digit income progress in Q1 FY26, reflecting consumer uncertainty and delayed deal choices in world markets.
The layoffs at TCS have sparked industry-wide concern, elevating questions on whether or not the IT sector is getting into a structural reset after many years of constant progress.
