TCS announces wage hike for 80% employees days after 12,000 layoffs

Tata Consultancy Services (TCS), one of India’s biggest IT companies, has announced a wage hike for as many as 80 per cent of its workforce which will come into effect from September 1.

TCS' wage hikes will come into effect from September 1. (Representational Photo/Reuters)

The company informed its employees about it through an email on Wednesday sent by the company’s CHRO Milind Lakkad and CHRO Designate K Sudeep, which was accessed by news agency PTI.

The hike would cover employees from junior to mid levels.

The extent of these wage hikes is not yet known; however, the internal email announcement comes at a time when the firm is preparing for a massive layoff of around 12,000 of its employees this year.

"We are pleased to announce a compensation revision for all eligible associates in grades upto C3A and equivalent, covering 80 per cent of our workforce. This will be effective 1st September 2025," the email reads.

"We would like to thank each one of you for your dedication and hard work, as we build the future of TCS together,” it adds, the PTI report said.

The company confirmed the move.

TCS to lay off 2% staff

Last month, TCS announced that it is going to cut its global workforce by 2 per cent this year. This means that over 12,000 employees are at the risk of losing their jobs.

In a statement, TCS said that the decision was taken for the IT firm to transition into a “future-ready organisation”, with a focus on market expansion, AI deployment and workforce realignment.

The move comes after the IT firm increased its workforce by 5,000 employees in the April-June quarter. As of June 30, 2025, the TCS workforce stood at 6,13,069 employees.

(With PTI inputs)