Amid layoffs, TCS declares pay hikes from September 1. Right here’s who’s getting them

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Tata Consultancy Companies (TCS) will roll out wage hikes for 80% of its staff beginning September 1—even because it plans to put off round 12,000 employees this 12 months in a sweeping effort to reshape its workforce and future-proof its operations.

Based on a PTI report, the compensation hike was introduced in an inside electronic mail by Chief Human Assets Officer Milind Lakkad and CHRO Designate Ok Sudeep on Wednesday. “We’re happy to announce a compensation revision for all eligible associates in grades as much as C3A and equal,” the e-mail learn, thanking staff for his or her “dedication and arduous work.”

Whereas the extent of the hikes stays unclear, an organization spokesperson confirmed the revision within the report, saying: “We shall be issuing wage hikes to round 80% of our staff efficient Sept. 1, 2025.”

The announcement comes amid a broader shake-up. TCS is transferring to put off roughly 2% of its international workforce—round 12,000 staff—primarily in mid and senior roles. The corporate says the cuts are a part of its pivot towards turning into a “future-ready organisation,” involving main investments in AI, market enlargement, and new infrastructure.

“As a part of this journey, we can even be releasing associates from the organisation whose deployment might not be possible,” the corporate mentioned final month.

This dual-track method—climbing pay for junior staff whereas trimming senior employees—highlights the shifting priorities inside India’s IT sector, which is grappling with international financial headwinds, U.S. commerce coverage pressures, and accelerating AI disruptions.

India’s prime tech corporations, together with TCS, Infosys, and HCLTech, have posted muted single-digit income progress in Q1 FY26, reflecting consumer uncertainty and delayed deal choices in international markets.

The layoffs at TCS have sparked industry-wide concern, elevating questions on whether or not the IT sector is getting into a structural reset after a long time of constant progress.

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