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TCS 2025: Layoffs, pay hikes, and mega CXO salaries explained
From 12,000 job cuts to pay hikes for 80% of staff and eye-catching executive pay packets - here’s a complete breakdown of the major developments at Tata Consultancy Services.
India's largest IT services firm, Tata Consultancy Services (TCS), is in the middle of one of its biggest organisational shake-ups in recent years - balancing significant layoffs with wage hikes, while its top executives take home hefty pay packages.
Here's everything you need to know.
Layoffs: 12,000 jobs to go
TCS will cut around 2% of its global workforce - about 12,000 jobs - over the course of FY26 (April 2025 - March 2026). The layoffs will largely hit middle- and senior-level employees across global operations.
CEO K Krithivasan said the move is aimed at making the company "more agile and future-ready" as it embraces AI at scale, invests in new technologies, enters fresh markets, and realigns its operating model.
However, he acknowledged that redeployment hasn't worked for all roles.
Employee union NITES has strongly opposed the decision, calling it "hostile" and urging the Labour Ministry to intervene. Critics argue the move could set a precedent for job insecurity in India's IT sector.
Wage Hikes for 80% of Staff
In an internal email sent by CHRO Milind Lakkad and CHRO Designate K Sudeep, TCS announced salary revisions for all eligible associates in grades up to C3A, covering around 80% of its workforce.
The hikes will be effective September 1, 2025, though the percentage increase has not been revealed.
Reports suggest increments this year will range between 4% - 8%, the lowest in four years, compared to 10.5% in FY22, 6-9% in FY23, and 7-9% in FY24.
Bench Policy and Hiring Freeze
TCS's bench policy - introduced in June - allows only 25 days annually without project allocation, with a target of 225 billed business days per year. The rule has triggered pushback from employees and unions.
Reports also indicate a freeze on senior-level hiring and the trimming of hundreds of benched staff in cities like Chennai, Hyderabad, Pune, and Kolkata. The company has also faced criticism over delays in onboarding around 600 lateral hires.
The Numbers: Workforce and Attrition
As of June 30, 2025, TCS's workforce stood at 6,13,069 employees. In Q1 FY26, the company onboarded 6,071 employees, with a net addition of 5,090. The attrition rate (last twelve months) rose to 13.8%, up from 13.3% in the previous quarter.
CXO Salaries of Top Brass
While most employees face lower-than-usual hikes, TCS leadership continues to comnmand substantial compensation:
- N Chandrasekaran (Tata Sons Executive Chairman): One of India’s highest-paid leaders, he received ₹155.81 crore in FY25—a 15% hike from ₹135 crore in FY24. This included ₹15.1 crore in salary and other compensation, plus ₹140.7 crore in commission on profits.
- K Krithivasan (CEO): Earned ₹26.52 crore in FY25—a 4% increase—comprising ₹1.39 crore in base salary, ₹2.12 crore in benefits/perks, and ₹23 crore in commission.
- NG Subramaniam (Former COO & Executive Director): Took home ₹11.55 crore till May 2024, including ₹30 lakh in salary, ₹7.24 crore in benefits/perks, and ₹4 crore in commission.
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