New recruits allege coercive dismissals and blacklisting threats by TCS, claiming, 'they are eager for us to leave'
In a surprising turn of events, Tata Consultancy Services (TCS) has announced a salary hike for 80% of its workforce, following a series of layoffs that affected nearly 12,000 employees, or about 2% of its global workforce.
The salary hike, effective from September 1, 2025, primarily targets junior and mid-level employees, amounting to approximately 4.5 lakh staff members. The raises range from 2-4% for onshore employees and 6-8% for offshore staff, with outperforming employees likely to receive double-digit increments based on a performance model.
The decision to raise salaries comes after a pause in the April 2025 increment cycle, which was halted due to macroeconomic uncertainties and weak demand in key markets. TCS's move to raise salaries now is an attempt to manage employee costs strategically while acknowledging market pressures and employee retention needs amid global economic slowdown, geopolitical tensions, and evolving technology disruptions such as AI.
However, the timing of the salary hike raises questions, following closely after the company's layoffs. Some netizens speculate that the layoffs are a cost-cutting measure, and the company does not want to pay the salary hike money. Reports suggest that some employees were asked to resign, with some offered three months' worth of pay as an incentive.
Reports also indicate that freshers or junior-level employees at TCS might be placed in high-pressure teams, with warnings potentially affecting their appraisal cycle and promotions. The attrition rate at TCS reached a two-year high of 13.8% in June, while onboarding 6,071 employees till now.
In a more concerning development, employees who were asked to resign were made to switch off their phones before meetings with the concerned department at TCS. Some employees seem to be aware of their legal rights in case of a wrongful termination, but many hesitate due to overbearing finances.
It is important to note that the TCS 'Bench Policy' was not mentioned in the provided text. This policy, which limits an employee's time on the bench to 35 days, has been a point of contention for many employees in the past.
Reports from TCS Bengaluru suggest that 300 people were forced to resign on campus over the past week, with a daily average of nearly 50.
In conclusion, TCS's announcement of a salary hike for 80% of its workforce follows a period of layoffs and raises questions about the company's motives. The rationale behind the salary hike appears to be a balancing act between workforce optimization, talent retention, and cost control, as the company navigates challenging market conditions. However, the tactics used in the process, such as coercing employees to resign, have raised concerns among employees and netizens alike.
[1] TCS Announces Salary Hike for Junior to Mid-Senior Level Staff (2025). [Link] [2] TCS Layoffs Affect Thousands of Employees (2025). [Link] [3] TCS's 'Future-Ready Organisation' Strategy Explained (2025). [Link] [4] TCS's Balancing Act: Layoffs and Salary Hikes (2025). [Link] [5] TCS's Strategic Employee Cost Management Amid Global Challenges (2025). [Link]
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- With the recent salary hike at TCS, finance careers in the IT sector may become more attractive, as job-seekers view it as a strategic move to manage employee costs while acknowledging market pressures.
- Educational institutions could reconsider their focus on preparing students for tech-related jobs, particularly in AI, as the need for AI-driven disruptions in the finance industry increases.
- The TCS's move to prioritize junior and mid-level employees in the salary hike may lead to increased competition for entry-level positions in the finance and business sectors, as ambitious students aim to secure employment.
- In the wake of TCS's layoffs and salary hike, employees might consider alternative career paths, including entrepreneurial ventures or roles within the education-and-self-development industry.
- As the finance industry faces continued challenges such as economic slowdown, geopolitical tensions, and technology disruptions, it remains crucial for businesses to prioritize employee retention through strategies like salary hikes and effective performance models.
