Tata Consultancy Services (TCS), India’s largest IT company, has announced salary hikes for 80% of its employees, even as it plans to lay off about 12,000 staff this year.
Who’s Getting the Salary Hike?
The salary hike will mainly benefit junior and mid-level employees. The hike will be effective from September 1, 2025.
In an email to employees, TCS said:
“We are happy to announce a compensation revision for all eligible employees up to grade C3A and equivalent, covering 80% of our workforce.”
However, TCS has not revealed the exact percentage of the hike.
The company thanked its employees for their hard work and said they are committed to building the future of TCS together.
Why Is TCS Laying Off Employees?
While giving raises to most employees, TCS is also planning to lay off around 12,000 employees—mainly from the middle and senior levels.
The company says this is part of its effort to become a “future-ready organisation”.
This includes:
- Investing in new technologies
- Using artificial intelligence (AI) at a large scale
- Expanding into new markets
- Updating its infrastructure
- Restructuring its workforce
TCS said they are also focusing on reskilling and redeploying employees, but some may be released if they cannot be placed in new roles.
Read more: Paytm Lays Off 4,600 Employees in FY25 to Focus on Profit and Growth
What’s Happening in the IT Industry?
TCS and other top Indian IT companies saw only small revenue growth in the first quarter of FY26.
This slow growth is due to:
- Global economic uncertainty
- Political tensions
- Delay in client decisions
- Reduced spending on technology
- Impact of US tariffs on outsourcing
- Rise of automation and AI
