Mumbai, India — April 17, 2026
India’s largest IT services company, Tata Consultancy Services (TCS), has announced the end of its layoff phase and confirmed a return to its standard salary increment cycle, offering relief to thousands of employees.
The company said it is now moving back to its regular appraisal cycle starting April 1, signaling improved business confidence and operational stability.
Strong Financial Performance Drives Recovery
According to CEO K. Krithivasan, the company’s return to normalcy is backed by solid financial growth and improving demand.
- Q4 Profit: ₹13,718 crore (up 12.2% year-on-year)
- Revenue: ₹70,698 crore (up 9.6%)
- New Deals: $12 billion in contract wins
The company’s performance reflects a rebound in global IT spending and strong deal momentum, including several large-scale contracts.
Background: Layoffs and AI-Led Restructuring
In July 2025, TCS had announced layoffs affecting around 2% of its global workforce—approximately 12,261 employees.
The move was part of a broader restructuring strategy aimed at aligning operations with emerging technologies like Artificial Intelligence (AI). However, it created uncertainty among employees regarding job security and salary growth.
Salary Hike Expectations for Employees
With the return of the standard cycle, employees can expect performance-based increments:
- Top performers: Double-digit salary hikes
- Average employees: Around 4.5% to 7% increase
The move is expected to boost employee morale after months of uncertainty.
Nasik BPO Case Raises Concerns
Separately, a serious case under investigation at TCS’s BPO unit in Nasik, Maharashtra, has drawn attention.
Local authorities have registered multiple FIRs following allegations made by women employees, including claims of harassment and coercion. Police have detained several individuals as part of the ongoing probe.
TCS has not issued detailed public comments on the matter but is expected to cooperate with authorities as investigations continue.
Outlook: Growth Momentum Returns, But Challenges Remain
TCS’s announcement marks a positive shift for India’s IT sector, signaling recovery after a period of restructuring and global uncertainty.
However, industry experts note that while financial performance has improved, companies will continue adapting to AI-driven changes and evolving workforce needs.
