TCS Confirms ‘Wage Hikes’ Amid 12,000-Employee Layoff Round

‘We can confirm that we will be issuing wage hikes to around 80 percent of our employees effective Sept. 1, 2025,” Tata Consultancy Services said in an email to CRN.

One of the world's largest IT services providers, Tata Consultancy Services (TCS), is raising the salaries for most of its workforce after recently unveiling plans to lay off 12,000 employees.

“We can confirm that we will be issuing wage hikes to around 80 percent of our employees effective Sept. 1, 2025,” said TCS in an email to CRN.

Last week, India’s largest IT services firm disclosed it would be cutting 12,000 employees, or about 2 percent of its roughly 613,000-employee workforce.

TCS CEO K Krithivasan said the 12,000 job cuts are not due to artificial intelligence.

“This is not because of AI giving some 20 percent productivity gains,” Krithivasan said in a recent statement. “This is driven by where there is a skill mismatch or where we think we have not been able to deploy someone.”

The 12,000 layoffs at TCS will be implemented throughout fiscal year 2026. The cuts will impact mainly mid- to senior-level professionals.

TCS Salary Hikes

The $30 billion Mumbai-based services giant confirmed on Thursday that it rolled out salary increases for most of its junior and midlevel employees.

The wage increases will go into effect on Sept. 1.

TCS employees, including new trainees to longtime consultant professional roles, will be eligible for the wage increase, the company said.

TCS’ 12,000 Layoffs

TCS said the 12,000 layoffs is part of its “journey” to becoming a “future-ready organization.”

“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,” TCS said in a statement last week.

To achieve this, TCS said, “a number of reskilling and redeployment initiatives have been underway. As part of this journey, we will also be releasing associates from the organization whose deployment may not be feasible.”

IT Layoffs In 2025

Many other large IT companies have also unveiled layoffs plans in 2025.

In July, Microsoft announced it will lay off roughly 15,000 employees in total.

Intel recently said it plans to end the year with a core workforce of about 75,000 employees via layoffs and attrition, down from 99,500 employees as of late 2024. Intel said about 15 percent of its global workforce would be let go.

Earlier this year, Salesforce reportedly laid off over 1,000 employees, or about 1.5 percent of its global workforce.

HP Inc. unveiled plans to lay off up to 2,000 employees this year, while Hewlett Packard Enterprise unveiled plans to reduce its workforce by about 2,500 employees.