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#TCS Salary Freeze & Layoffs Explained | Legal Issues & Employee Backlash

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TCS Layoffs, Salary Freeze & Hiring Chaos: The Full Story

Mass Layoffs of ~12,000 Employees
Tata Consultancy Services (TCS) has announced the layoff of approximately 12,000 employees—around 2% of its global workforce—primarily impacting mid- and senior-level staff during FY 2026. The company attributes the cuts to strategic workforce realignment amid shifting business demands.

Salary Hikes Frozen
In response to softening global demand, TCS has suspended salary increments and halted senior-level hiring across its operations as part of broader cost-cutting measures.

Business-Linked Compensation Model
The company emphasized that pay hikes now depend more heavily on client-driven business growth and billable utilization, tightening alignment with performance outcomes.
The Times of India
India Today

Offer-Letter Delays & Onboarding Crisis
Over 600 experienced lateral hires were provided formal offer letters and resigned from their previous jobs, only to have their joining delayed indefinitely. Many are facing financial and personal hardships. Employee groups like NITES have raised concerns about the ethical and legal implications.

Legal & Government Intervention
The IT union NITES has filed a formal dispute under the Industrial Disputes Act, 1947, accusing TCS of unfair retrenchment practices and lack of government notification. Karnataka’s Labour Department has sought clarifications and summoned TCS leadership.
mint

CEO Pay Under Spotlight
Public criticism has surfaced over CEO K. Krithivasan’s ₹26.52 crore salary, particularly as mass layoffs and pay freezes unfold.
India Today

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