ArdorComm Media Group

Contact Us
Tuesday, December 16, 2025 1:41 AM
logo
Menu
logo

TCS

TCS Announces 100% Variable Pay for Junior Employees Amid Steady Growth in Q2FY26

Leave a Comment / / Human Resource Community
ardorcomm news

Tata Consultancy Services (TCS), India’s largest IT services company, has announced the rollout of its quarterly variable allowance (QVA), with junior employees set to receive 100% of their entitlement. The company’s Chief Human Resources Officer, Sudeep Kunnumal, confirmed the development in an internal communication, highlighting that mid- and senior-level employees will also see a higher payout compared to last year. Kunnumal noted that annual salary revisions for employees up to grade C3A have been implemented effective September 25, with top performers securing double-digit increments. Typically, employees in grades C, C1, and C2—considered the junior band—receive both annual hikes and full variable pay, while those in senior roles have performance-linked payouts. “All associates up to grade C2 under the QVA plan will receive 100% of their quarterly variable allowance,” Kunnumal said in his message. “For grades C3A and above, the payouts will vary based on business performance, though the overall payout for this group will exceed last year’s levels.” In its second-quarter financial results for FY26, TCS reported a 3.8% sequential dip in net profit to ₹12,075 crore, down from ₹12,760 crore in the previous quarter. However, revenue rose 3.7% quarter-on-quarter to ₹65,799 crore, with constant currency growth of 0.8%. The IT giant also saw a reduction of nearly 20,000 employees during the September quarter, even as it doubled its talent base in advanced AI and machine learning skills to 1,59,000 professionals compared to the same period last year. Source: Economic Times

TCS Announces 100% Variable Pay for Junior Employees Amid Steady Growth in Q2FY26 Read More »

TCS to Lay Off Over 12,000 Employees Amid AI Disruption and Economic Pressures

Leave a Comment / / Human Resource Community
Ardorcomm news

In a landmark decision, Tata Consultancy Services (TCS), India’s largest IT services provider and the crown jewel of the Tata Group, is set to let go of 12,261 employees — nearly 2% of its global workforce — making it the biggest layoff in the company’s history. The move comes as TCS navigates a rapidly evolving technology landscape marked by AI-driven disruption, weakening demand, and global economic headwinds. The company, which had a workforce of over 610,000 as of June, is restructuring to align with new business realities. Historically, workforce reduction at TCS has been modest — for instance, in FY15, the firm cut about 3,000 jobs, roughly 1% of its employee base. This latest wave of layoffs will largely impact mid- to senior-level professionals, particularly those who cannot be transitioned into new roles within the organization. The restructuring signals a major pivot for TCS, as it intensifies its focus on automation and AI to remain competitive in an increasingly margin-sensitive market. “This transformation is about preparing TCS for the future,” CEO K Krithivasan noted in an internal communication. “While such changes are essential for our continued growth, we recognize the challenges it brings to our colleagues. We deeply appreciate their contributions and will support them through this transition.” Analysts say the decision reflects a broader industry trend. Phil Fersht, CEO of HfS Research, highlighted that AI is significantly disrupting the traditional, manpower-heavy IT services model. Clients are also pushing for steep cost reductions — sometimes as much as 20-30% — compelling firms like TCS to reevaluate their cost structures. The trend isn’t isolated to TCS. Other Tata Group companies such as Tata Motors and Tata Steel have also undertaken job cuts in recent years to streamline operations and boost profitability. In 2019, Tata Steel cut 3,000 positions in its European business. This move by TCS underscores the shifting priorities within the IT industry, where future-readiness increasingly hinges on agility, automation, and leaner operations. Source: Economic Times

TCS to Lay Off Over 12,000 Employees Amid AI Disruption and Economic Pressures Read More »

TCS Offers Full Q1 Variable Pay to Majority of Employees, Keeps Hike Plans on Hold

Leave a Comment / / Human Resource Community

Tata Consultancy Services (TCS), India’s largest IT services provider, has disbursed 100% of the quarterly variable allowance (QVA) to over 70% of its workforce for the April–June quarter, according to an internal communication from the company’s HR head, Milind Lakkad. The remaining employees—primarily those in senior roles—will see variable pay linked to the performance of their specific business units. In an email shared with employees last week, Lakkad stated that all staff up to the C2 grade (or equivalent levels) will receive the full variable component for the first quarter. Employees in the higher C3 grade and above, which includes senior and leadership positions, will have their payouts adjusted based on business unit performance. TCS’s employee hierarchy begins with trainees at the ‘Y’ level, moving up through C1 (systems engineer), then C2, C3 (split into A & B bands), followed by C4, C5, and CXO levels. Responding to media queries, a TCS spokesperson confirmed the variable payouts, emphasizing that the process aligns with the company’s standard quarterly compensation framework. However, the company has not yet announced its annual salary increments, citing a challenging global business climate. TCS has seen revenue decline in dollar terms for three consecutive quarters, a trend driven by sluggish discretionary tech spending and broader economic uncertainties. During Q1 FY25, the company added 5,060 employees, bringing its total workforce to approximately 613,000. Reflecting on the quarterly performance, CEO K Krithivasan noted a continued delay in client decision-making and project commencements. “Discretionary investments remain muted and even worsened slightly this quarter due to ongoing global conflicts, macroeconomic concerns, and supply chain disruptions,” he said. Krithivasan added that a rebound in client spending is expected once there’s greater economic clarity. Source: Economic Times  

TCS Offers Full Q1 Variable Pay to Majority of Employees, Keeps Hike Plans on Hold Read More »

TCS Q1 FY26: Attrition Rises Slightly to 13.8%, Net Profit Grows 6.7% YoY

Leave a Comment / / Human Resource Community

Tata Consultancy Services (TCS), India’s largest IT services company, reported a modest uptick in employee attrition during the first quarter of the financial year 2025–26. According to a regulatory filing on Thursday, the attrition rate for Q1 stood at 13.8%, up from 13.3% in the March quarter and 13% in the preceding December quarter. As of June 30, 2025, the company’s total workforce had grown to 613,069 employees, reflecting a year-on-year increase of 6,071 from the 607,979 reported at the end of March. Highlighting the company’s focus on skill enhancement, Milind Lakkad, Chief Human Resources Officer at TCS, stated, “Talent development remains central to our strategy. This quarter, our associates dedicated 15 million hours to upskilling, particularly in emerging technologies. We now have over 114,000 employees proficient in advanced AI capabilities.” The IT major also opened the earnings season for the June quarter by posting a 6.7% year-on-year rise in consolidated net profit, reaching ₹12,819 crore, compared to ₹12,105 crore in the same quarter last year. Revenue from operations witnessed a 1.3% increase, totaling ₹63,437 crore, up from ₹62,613 crore in Q1 FY25. Employee benefit expenses climbed 3.6% year-on-year to ₹37,715 crore, while the company’s overall expenses rose 1.6% to ₹48,118 crore. TCS also announced an interim dividend of ₹11 per share. The record date for eligibility is set for July 16, 2025, with dividend payouts scheduled by August 4, 2025. Source: Economic Times

TCS Q1 FY26: Attrition Rises Slightly to 13.8%, Net Profit Grows 6.7% YoY Read More »

TCS revamps Marks and Spencer’s HR function

Leave a Comment / / Human Resource Community

In order to provide a modern, digital employee experience, Tata Consultancy Services worked with Marks and Spencer (M&S) to digitally change its HR function and connect its future business goals with HR initiatives. TCS has been a prominent player in several business-critical technology and transformation programmes and has been a strategic partner to M&S for more than a decade.  The retail giant selected TCS to lead its HR transformation as well. The extensive contextual and functional expertise of TCS consultants was used to create business processes and experiences that were in line with the demands and standards of the modern workforce. The team utilised the Oracle HCM suite to construct a contemporary, flexible, and scalable cloud-based solution using those blueprints. The M&S deal, according to Abhijit Niyogi, vice president and business unit head-retail UK & Europe at TCS, has created a significant opportunity in the HR sector in the UK and Europe. “We are in active discussion with multiple different retailers at this point of time for such implementation.” “During the [coronavirus] pandemic companies hired several thousands of employees across regions, but these recruits never got to experience the joining process, which is the first step experience of connecting with the company. Hence what we have crafted for M&S resonates well with several other players in the regions,” said Niyogi. TCS migrated 27 million records of M&S employees working across 1,450 locations in the UK as part of the effort, enabling secure, seamless data connects across the landscape.

TCS revamps Marks and Spencer’s HR function Read More »