Mumbai— Tata Consultancy Services (TCS), India’s largest IT services company, has announced wage hikes for nearly 80% of its workforce, even as it prepares to lay off around 12,000 employees this year. The hikes, covering employees from mid to junior levels, will be effective from September 1.
An internal email, jointly issued by Chief Human Resources Officer Milind Lakkad and CHRO Designate K Sudeep, confirmed that compensation revisions will apply to all eligible associates up to grade C3A. “We are pleased to announce a compensation revision… covering 80 per cent of our workforce,” the email stated. “We would like to thank each one of you for your dedication and hard work, as we build the future of TCS together.
Although the exact percentage of the salary hike was not disclosed, the company confirmed the decision to PTI, emphasizing its commitment to reward and retain talent.
This development comes amid a broader organisational restructuring, under which TCS will release nearly 2% of its global workforce — roughly 12,000 employees — over the course of the year. Most of those impacted will be in mid- and senior-level roles.
The layoffs are part of TCS’ shift toward becoming what it terms a “future-ready organisation.” This includes major investments in artificial intelligence, expansion into new markets, deepening of partnerships, and a realignment of workforce models. The company has also been pushing internal reskilling and redeployment initiatives.
TCS’ statement from last month highlighted that while many employees are being trained for new roles, those whose deployment is deemed unfeasible will be let go.
The dual move — rewarding a large portion of the workforce while initiating layoffs — has stirred debate in the tech sector. It comes as the IT industry faces headwinds from weak global demand, US protectionist policies, and AI-driven automation. India’s top tech firms have seen muted growth in Q1 FY26, with single-digit revenue increases and cautious client spending amid economic and geopolitical uncertainties.
