India's largest Information Technology (IT) services company, Tata Consultancy Services (TCS), on Wednesday, August 6, 2025, notified staff that it will be raising wages for roughly 80% of its workforce, which includes mid-level to junior-level positions.

In an email sent to staff on Wednesday, August 6, 2025, TCS Chief Human Resources Officer (CHRO) Milind Lakkad, and CHRO Designate K Sudeep, stated that the pay increases would take effect on September 1.

The extent of wage hikes could not be immediately confirmed, as per a PTI report. 

Layoffs part of 'future-ready' strategy

The company stated, "We can confirm that we will be issuing wage hikes to around 80% of our employees effective 1st September 2025." 

The action to retain and reward talent coincides with TCS's decision to lay off more than 12,000 workers as part of a larger plan to become a "future-ready organisation." 

According to the corporation, this means concentrating on personnel reorganisation, market expansion, AI implementation, and technology, said a PTI report. 

What does this mean for the IT sector?

In reality, the TCS layoffs have sparked broader discussions about whether or not the IT sector as a whole is about to undergo a significant overhaul, given the turbulence caused by global macro uncertainties. The effect of the United States' crushing tariffs on outsourcing sentiments generally, and disruptions driven by artificial intelligence (AI). 

As it stands, India's leading IT services providers reported single-digit revenue growth in Q1 Financial Year (FY) 26, ending a somewhat depressing June period in which geopolitical tensions, and financial volatility affected global tech demand, and delayed customer decision-making.