TCS has announced a salary hike for 80% of its employees, which will be effective from September 1, 2025. Along with this, the company will also lay off 12,000 employees. The focus is on AI and new technology.
Add informalnewz.com as a Preferred Source
TCS Salary Hike:The country’s largest IT company Tata Consultancy Services (TCS) has made a big announcement for its employees. The company said that it is going to increase the salary of about 80% of the employees. This will mostly include mid and junior level employees. This salary hike will be effective from September 1, 2025.
The company’s CHRO Milind Lakkad and CHRO Designate Sudip gave this information in an email on Wednesday. According to the email, “All employees of C3A and equivalent grade will get a salary hike, which covers 80% of the total employees. This change will come into effect from September 1.” However, how much the salary hike will be has not been disclosed.
Salary increased, but 12,000 people will lose their jobs
This salary hike has come at a time when TCS is also laying off about 12,000 employees. The company has clarified that this move is part of a larger strategy to create a “future-ready organization”. According to TCS, this strategy includes investing in new technologies, deployment of artificial intelligence (AI), expansion into new markets and workforce re-alignment.
Focus on AI and new technology
The company says that it is focusing on new age technology, AI, and large infrastructure. For this, many employees are being re-skilled and re-deployed. But those whose deployment is not possible will have to leave the company. This will affect about 2% of the workforce, especially at the mid and senior level.
Impact on IT industry
The news of these layoffs and salary hikes by TCS has created a stir in the entire IT sector. The growth of Indian IT companies is under pressure amid uncertainty in the global market, strict US tariffs and AI-driven changes. For this reason, top companies have registered only single digit growth in the June quarter (Q1 FY26) and decisions on new projects have also slowed down.
Add informalnewz.com as a Preferred Source
DISCLAIMER
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at informalnewz@gmail.com
