TCS Announces Wage Hikes Amid Strategic Layoffs

Tata Consultancy Services (TCS) will implement wage hikes for 80% of its workforce, starting September 1, 2025. The company also plans to lay off 12,000 employees as part of its future-focused strategy. TCS is adjusting its workforce to invest in technology and market expansion.

Tata Consultancy Services (TCS), India's largest IT services firm, has announced wage increases for approximately 80% of its employees, encompassing mid to junior levels. The wage boosts are set to take effect on September 1, 2025, according to an internal email by CHRO Milind Lakkad and CHRO Designate K Sudeep.

The communication expressed appreciation for the staff's dedication as the company looks towards the future. However, these wage hikes coincide with TCS's plans to reduce its workforce by about 12,000 employees, predominantly in middle and senior roles, as part of a strategy to realign its focus on technology investments and market expansion.

The adjustments come as TCS aims to position itself as a 'future-ready organization,' emphasizing technological advancements, artificial intelligence deployment, and strategic market moves. As of late June 2025, TCS employed 613,069 individuals, having added 5,000 employees in the previous quarter.

(With inputs from agencies.)