TCS may pause hikes, senior hiring

31-Jul-2025

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Tata Consultancy Services (TCS) will freeze hiring of experienced professionals and suspend annual salary hikes globally, The Economic Times reported, citing people aware of the development. The move follows the company’s announcement that it plans to lay off 12,000 employees.

The Tata Group firm has also introduced a stricter internal policy for benched employees, who are not currently assigned to client projects. Such employees now have 35 days to find a billable assignment or exit the company, the report said. Phasing out of such staff has already begun across cities including Hyderabad, Pune, Chennai and Kolkata.

Onboarding delays for lateral hires have exceeded 65 days, according to ET. The measures are part of a broader operational cost-cutting drive, with an internal email to staff over the weekend citing global trade and macroeconomic uncertainties.

One senior IT analyst estimated that the mid- and senior-level layoffs alone could save TCS between $300–400 million (Rs 2,400–3,600 crore) annually, reflecting a 100–150 basis point margin lift.

However, the TCS CEO has said the layoffs would be implemented gradually, reported the business daily. The announcement has caused unease across the IT sector.