TCS: 80% Salary Hike, 12,000 Jobs Axed – A Future-Ready Gamble?
Tata Consultancy Services (TCS) announced a significant restructuring on August 7, 2025, impacting thousands of its employees. The IT giant will implement salary increases for 80% of its workforce, effective September 1, 2025.
This move, however, comes alongside a planned layoff of 12,000 employees. TCS cited the need to become a “future-ready organization” as the rationale behind this dual strategy.
The company aims to realign its workforce to focus on emerging technologies and meet evolving client demands. This involves streamlining operations and investing in high-growth areas.
The salary hikes are intended to retain and motivate valuable employees in key roles. The layoffs, while undeniably disruptive, are seen by TCS as a necessary step for long-term growth.
This bold strategy by TCS raises crucial questions about the future of the Indian IT sector and the impact of automation on employment. The coming months will be critical in assessing the success of this ambitious plan and its implications for the broader economy.
