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TCS Ends Layoffs, Returns to Normal Growth
New Delhi: TCS, one of the country's largest IT companies, has signaled that the phase of large-scale layoffs within the organization has now come to an end. This implies that the company is gradually returning to its standard operational norms—a framework characterized by greater stability regarding employee job security and salary increment processes.
In 2025, the company decided to reduce its workforce by approximately 2%, a move that impacted thousands of employees. The company cited the need for structural restructuring and the imperative to adapt to new technologies—such as Artificial Intelligence—as the reasons behind this decision. Consequently, this situation fueled significant uncertainty among many employees regarding both their job security and future salaries.
According to the CEO of TCS, the situation has now improved. The company's earnings have strengthened, it has secured new projects and major contracts, and market demand has also witnessed an uptick. Driven by these factors, the company's confidence has surged, prompting it to decide to revert to its previous operational systems.
Recent financial results have shown robust growth in both the company's profits and revenue. The securing of new multi-billion dollar deals has further solidified the company's financial position.
TCS is now set to revert to its traditional salary increment system. Typically, the company grants annual salary hikes based on individual performance. High-performing employees receive more substantial raises, while the average increment generally ranges between 4.5% and 7%. Exceptional performers may even receive double-digit increments.
Meanwhile, a serious issue has surfaced involving TCS's BPO unit located in Nashik. Several female employees have lodged grave complaints alleging sexual harassment and forced religious conversion. In connection with this matter, the police have registered multiple FIRs, and several individuals have been arrested.
Police investigations currently suggest that certain suspended employees are the primary accused in this case. This incident has emerged as a distinct type of challenge for the company, and the investigation is currently ongoing.
On one hand, TCS is returning to normalcy driven by its financial strength and stability; on the other, the controversy surrounding its Nashik unit raises significant questions regarding the company's reputation. Overall, the current period represents a blend of both recovery and challenges for the company.
