Under fire for layoffs, TCS now announces salary hike for workforce

Employees, ranging from trainees with a few months of experience, to assistant consultants who have worked for more than a decade, will be eligible for the wage revision.

Written by George Mathew

Mumbai | Updated: August 7, 2025 02:23 PM IST

2 min read

The April annual hikes were delayed after the Mumbai-based company cited uncertain business environment. (Reuters Photo)

After announcing a layoff of over 12,200 employees last month, Tata Consultancy Services (TCS), the country’s largest IT services firm, has announced a salary hike for its workforce.

“We are pleased to announce a compensation revision for all eligible associates in grades up to C3A and equivalent, covering of our workforce,” TCS said in an organisational announcement. This will be effective September 1, 2025, it said. “We would like to thank each one of you for your dedication and hard work, as we build the future of TCS together,” the TCS note said.

The grading hierarchy at TCS begins with Y (trainee), moves up through C1 and C2, and then reaches C3A, which signifies the start of mid-level roles. C3A is followed by grades that represent mid-to-senior level positions. Employees at the C3A level are usually designated as Assistant Consultants, reflecting their advancement beyond entry-level roles such as IT Analyst (C2).

TCS shares have fallen 34 per cent from the 52-week high level of Rs 4,585 to Rs 3030.75 as of August 7, making it one of the top losers in the stock market.

In a event that triggered a major shake-up in India’s IT sector late last month, TCS announced that it will be slashing 2 per cent of its global workforce – roughly 12,200 jobs – over this year. The move will impact primarily mid- and senior-level employees, it said. Framed as a push toward building a “future-ready generation” through “skilling and redeployment”, the move is, in effect, a sweeping cost-cutting exercise. As on June 30, 2025, the TCS workforce stood at 6,13,069.

TCS said it is on a journey to become a future-ready organisation. “This includes strategic initiatives on multiple fronts including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure and realigning our workforce model,” it had said in a statement.

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