SOURCE : NEW18 NEWS
Last Updated:May 05, 2025, 16:49 IST
The move comes after the IT major last month deferred annual salary hikes amid uncertain business environment, particularly the impact of the ongoing global tariff war.
The pay cuts at TCS come amid broader cost-management measures taken by the company in light of global economic uncertainties.
Tata Consultancy Services (TCS), India’s largest IT services company, has slashed the variable pay of its senior employees for the third quarter in a row, Moneycontrol has reported.
The IT major had initially reduced this component of salaries in the September quarter after linking it to office attendance. However, even in the December quarter, several employees reportedly received reduced variable payouts despite complying with the company’s return-to-office mandate.
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The pay cuts come amid broader cost-management measures taken by the company in light of global economic uncertainties.
Last month, while announcing its earnings for the March quarter, TCS said it would defer annual salary hikes. “A decision on the wage hike will be taken within the year,” said Chief Human Resource Officer Milind Lakkad during the post-earnings press conference. He attributed the move to the uncertain business environment, particularly the impact of the ongoing global tariff war that continues to cloud short-term revenue growth prospects.
As of the end of the March quarter, TCS had a workforce of 607,979 employees. Attrition edged up to 13.3%, compared to 13% in the previous quarter and 12.5% during the same period a year ago.
The country’s largest IT services company on April 10 reported a 1.68 per cent decline YoY in its net profit to Rs 12,224 crore for the fourth quarter ended March 31, 2025 (Q4 FY25). However, during the full financial year 2024-25, TCS’ net profit rose 5.76 per cent to Rs 48,553 crore.
The company, however, posted a record total contract value (TCV) of $12.2 billion for the quarter, with a healthy book-to-bill ratio of 1.6.
Its CFO Samir Seksaria during the press conference said, “For FY26, our overall guidance range still remains at 26-28 per cent. And given the current environment, there might be some impact on the operating leverage maybe because of utilisation taking an impact… Also, uncertainty provides an opportunity and we will use this opportunity from a cost-optimisation perspective as well.”
TCS hired a total of 42,000 employees this fiscal year (FY25) as planned, according to a statement on Thursday.
During the press conference, Milind Lakkad said the company will hire the “similar number of employees or higher” in the ongoing financial year 2025-26.
- First Published:
May 05, 2025, 16:36 IST
