TCS Announces Wage Increases for Majority of Workforce

Tata Consultancy Services (TCS), India’s leading IT services provider, has announced a significant wage hike for approximately 80% of its workforce, specifically targeting mid to junior-level employees. This decision comes amidst the company’s strategic move to lay off around 12,000 employees this year. The wage increases will be effective from September 1, as communicated by TCS Chief Human Resources Officer Milind Lakkad and CHRO Designate K Sudeep in an email to employees.

Strategic Workforce Realignment and Future-Readiness

The decision to implement wage hikes is part of TCS’s broader strategy to become a future-ready organization. This involves significant investments in technology, artificial intelligence deployment, market expansion, and workforce realignment. The company aims to reward and retain talent while navigating the challenges posed by global macroeconomic uncertainties and technological disruptions.

Impact of Layoffs on TCS and the IT Industry

The layoffs, affecting about 2% of TCS’s global workforce, primarily target middle and senior grades. This move has sparked discussions about a potential reset in the IT industry, driven by geopolitical tensions, US tariffs impacting outsourcing sentiments, and AI-led changes. Despite these challenges, TCS remains committed to reskilling and redeployment initiatives as part of its transformation journey.

Industry Context and Future Outlook

The announcement comes at a time when India’s top IT firms are experiencing single-digit revenue growth due to macroeconomic instability and delayed client decision-making. As TCS navigates these turbulent times, its focus on strategic initiatives aims to position the company for sustained growth and innovation in the evolving tech landscape.