TCS to hike salaries of 80% employees amid mass layoffs
What's the story
Tata Consultancy Services (TCS), India's leading IT services company, has announced a wage hike for nearly 80% of its workforce. The decision is part of a larger strategy to retain and reward talent. This announcement comes at a time when TCS is also planning to lay off over 12,000 employees this year as part of its workforce realignment strategy.
Implementation details
Wage hike effective from September 1
The wage hike, which will be applicable to mid to junior-level employees, will come into effect from September 1. TCS's Chief Human Resources Officer (CHRO), Milind Lakkad, and CHRO Designate K Sudeep announced the decision in an email to employees on Wednesday. The email read, "We are pleased to announce a compensation revision for all eligible associates in grades up to C3A and equivalent."
Future readiness
TCS's future-ready journey
The wage hike announcement comes as part of TCS's broader strategy to become a "future-ready organization." The company is focusing on investing in technology, deploying artificial intelligence (AI), expanding into new markets, and realigning its workforce. Last month, TCS had said it was on a journey to become a future-ready organization with strategic initiatives across multiple fronts, including investing in new tech areas and deploying AI at scale.
Workforce adjustments
Reskilling and redeployment efforts
As part of its future-ready journey, TCS has also been reskilling and redeploying employees. The company had said last month that it would be releasing associates from the organization whose deployment may not be feasible. This move is expected to impact about 2% of TCS's global workforce, primarily in middle and senior grades, over the course of this year.