TCS bumps up variable pay to 80% as it bets AI
Business
TCS just bumped up variable pay for its mid-to-senior folks—now up to 80% for Q3 FY26 (the October-December quarter), compared to just 20-50% over the past two years.
It's a clear sign the company's betting on its AI-driven future and feels good about business through 2026.
Layoffs and hiring at the same time
Most mid-level employees are seeing their payouts hit that new high, while senior staff are getting between 40-80%.
At the same time, TCS has let go of over 12,000 people as it shifts focus to AI projects—yet they clocked $1.8 billion in annualized AI revenue and landed $9.3 billion in new contracts recently.
The company's also hiring fresh talent with skills in AI and cybersecurity to keep up with tech trends and future growth.