Home / Business and Economy / TCS Offers Wage Hikes to 80% of Workforce Amid Layoffs
TCS Offers Wage Hikes to 80% of Workforce Amid Layoffs
6 Aug
Summary
- TCS to lay off 12,000 employees as part of "future-ready" strategy
- Wage hikes effective September 1, 2025, covering mid to junior levels
- Hikes aim to reward and retain talent during workforce realignment
As of August 6, 2025, India's leading IT services company Tata Consultancy Services (TCS) is navigating a complex workforce strategy. On one hand, the company has decided to lay off over 12,000 employees as part of a broader plan to become a "future-ready organization." This entails a focus on new technologies, AI deployment, market expansion, and workforce realignment.
However, TCS is also taking steps to reward and retain its existing talent pool. The company has informed employees that it will be rolling out wage hikes for about 80% of its workforce, covering mid to junior level staff. These hikes will be effective September 1, 2025, according to an email sent by TCS's Chief HR Officers.
The move to offer raises comes at a time when the IT industry is facing turbulence from global macroeconomic uncertainties and the impact of AI-led disruptions. TCS, like other top Indian IT firms, has reported single-digit revenue growth in the first quarter of the 2026 fiscal year, as geopolitical tensions and economic instability have weighed on global tech demand.
Despite the layoffs, TCS appears committed to investing in its workforce and ensuring it remains "future-ready" through a combination of strategic initiatives, including reskilling, redeployment, and selective talent retention.
