- Recent $12 billion in secured deals rebuilds internal and external confidence.
TCS Layoffs: Tata Consultancy Services (TCS) has signalled a return to normalcy after a year marked by job cuts, delayed salary revisions and heightened scrutiny.
The country’s largest IT services firm has confirmed that its workforce rationalisation exercise has now concluded and that it will reinstate its standard annual salary increment cycle from April 1.
The announcement comes as the company attempts to steady sentiment among employees and investors following a period of uncertainty, reported Firstpost.
While operational indicators point to recovery, TCS also finds itself dealing with reputational challenges linked to a serious case reported at its Nashik facility.
Return to Stability After Workforce Reset
TCS’s decision to resume its usual increment cycle marks a notable shift from the disruption seen over the past year. In July 2025, the company announced layoffs impacting around 2 per cent of its global workforce, or roughly 12,000 employees. The move was positioned as part of a broader restructuring effort aimed at aligning its talent pool with evolving technologies, particularly artificial intelligence.
The restructuring phase also affected the company’s traditional salary revision timeline, leaving many employees uncertain about pay hikes and job continuity. With the latest announcement, the company has indicated that this phase is now behind it, restoring a sense of predictability to its compensation structure.
TCS management has attributed this transition to improved business visibility and stronger financial performance. CEO K Krithivasan has indicated that the company is now operating from a position of greater confidence, supported by both demand recovery and deal momentum.
Strong Financial Performance Supports Shift
The company’s recent financial results appear to underpin this renewed confidence. In its latest quarterly earnings, TCS reported a net profit of Rs 13,718 crore, marking a 12.2 per cent year-on-year increase. Revenue rose 9.6 per cent to Rs 70,698 crore during the same period.
In addition, the company has secured deals worth around $12 billion in recent months, including several large contracts. These wins are seen as a key factor in rebuilding internal and external confidence, particularly after a period when global IT spending had shown signs of moderation.
The return to the standard increment cycle is also expected to provide relief to employees who had faced uncertainty over compensation. TCS continues to follow a performance-linked approach to salary hikes. High-performing employees are likely to receive double-digit increments, while the majority of staff can expect increases in the range of 4.5 to 7 per cent, depending on performance ratings and roles.
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Nashik Case Casts Shadow Over Recovery
Even as TCS attempts to move past operational disruptions, the company is grappling with serious allegations emerging from its Nashik BPO unit in Maharashtra.
According to reports, several women employees have accused colleagues of sexual harassment, abuse and attempts at forced religious conversion. The matter has escalated into a police investigation, with authorities in Nashik registering multiple FIRs.
Police sources indicate that at least nine FIRs have been filed so far, and several individuals have been taken into custody. Two suspended employees, identified as Tausif Attar and Nida Khan, are reported to be among those under scrutiny in connection with the case.
The allegations have drawn widespread attention and raised concerns around workplace safety and corporate governance within one of India’s most prominent IT firms. While the investigation is ongoing, the episode has added a layer of reputational risk at a time when the company is seeking to reinforce confidence.
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