TCS Lifts Salaries for 80% of Staff from September 1 Amid Strategic Layoffs

Tata Consultancy Services (TCS) is giving a boost to nearly 80% of its workforce with delayed salary hikes, set to begin on September 1. At the same time, the company plans to lay off around 2% of its global staff—over 12,000 mid- to senior‑level employees. This mixed move comes against the backdrop of India’s IT sector navigating slowing demand and growing uncertainty.

Salary Hikes for Junior and Mid‑Level Staff
In an internal email, TCS informed employees that those up to grade C3A—ranging from freshers to assistant consultants—will receive salary revisions. This cohort forms the bulk of the organisation’s workforce, and the move is intended to retain and motivate core talent.

Simultaneous Workforce Restructuring
While raises are coming for many, TCS is also restructuring. It has confirmed plans to lay off more than 12,000 employees this year, largely affecting mid- and senior-level roles.

Why This Strategy Matters
This dual approach signals a two‑pronged tactic: reward and retain key talent at the foundational levels while streamlining higher-cost tiers. For India’s IT hubs—and even smaller cities where the sector is a growing employer—it’s a reminder that job security and compensation trends can shift fast in this digital age.

Conclusion
TCS’ decision paints a picture of a company straddling two paths—boosting morale among its junior ranks while tightening its upper structure. For Tier 2 cities where careers in IT carry big dreams, this is a moment to stay informed: adaptation is the only constant