TCS Announces Wage Hikes Amidst Strategic Overhaul and Layoffs

Tata Consultancy Services (TCS), India's IT giant, has revealed plans to roll-out wage hikes for approximately 80% of its workforce. Intended for mid to junior level employees, the salary increases will come into effect on September 1, 2025, as part of a strategy aimed at retaining talent.

This development coincides with the company's decision to downsize, impacting roughly 12,000 employees as TCS seeks to align its workforce with future strategic goals. This includes investing in new technologies, artificial intelligence deployment, and expanding into new markets.

The initiative has sparked broader discussions within the industry on potential shifts amidst global economic uncertainties and AI disruptions. TCS's announcement follows a challenging quarter for India's IT sector, marked by single-digit revenue growth amid geopolitical tensions and delays in client decision-making.

(With inputs from agencies.)