TCS Wage Hikes Amid Strategic Realignment and Layoffs
Tata Consultancy Services (TCS) announces wage hikes for most of its workforce while preparing to lay off 12,000 employees. The wage hikes will be effective from September 2025, part of a larger strategy to invest in technology and AI. This move has sparked discussions on the IT industry's future.
- Country:
- India
Tata Consultancy Services (TCS), India's largest IT services company, informed its employees of an impending wage hike that will affect 80% of its workforce. This increase targets mid to junior-level staff and will be effective September 1, 2025.
The announcement comes as TCS plans to lay off 12,000 employees, aligning with its broader strategy to evolve as a 'future-ready organisation.' The company's strategic initiatives include investing in new technologies, expanding markets, and deploying AI at scale.
This development has sparked wider conversations about the IT industry's direction amid global economic uncertainties and AI disruptions, especially as Indian IT firms report modest revenue growth for Q1 FY26 due to geopolitical tensions.
(With inputs from agencies.)
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