Tata Consultancy Services (TCS), India’s largest IT services firm by revenue, has announced a delay in salary hikes for its employees, attributing the decision to global macroeconomic uncertainties and ongoing tariff tensions involving the United States and other nations. The company, which held a press conference on Thursday, clarified that the pay raises originally scheduled for April will now be considered later in the financial year, once the business environment stabilizes. “We will decide during the year when to make the wage hike,” said Milind Lakkad, Chief Human Resources Officer at TCS, highlighting a cautious approach reminiscent of actions taken during the onset of the COVID-19 pandemic in 2020.
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Despite the freeze on salary hikes, TCS will continue offering variable payouts. For the fourth quarter, 70% of employees are set to receive their full variable pay, while the remaining payouts will be determined based on performance. CEO and MD K Krithivasan noted that the company is witnessing delays in project ramp-ups and client spending, driven by uncertainty over tariffs. “If this continues, there will be further delays in discretionary spending,” he added.
The tech giant reported a marginal 1.7% dip in net profit for Q4FY25, standing at ₹12,224 crore. The slowdown comes even as TCS announced a total dividend payout of ₹45,612 crore for FY25. The company also continues its hiring momentum, with plans to onboard around 42,000 engineering graduates in FY26 — consistent with its previous year’s intake.
During Q4, TCS added 625 employees, bringing its total workforce to 607,979. The company reported an annual headcount increase of 6,433, marking a reversal from the previous year’s reduction of over 13,000 roles. However, attrition inched up slightly to 13.3% in Q4FY25 from 13% in the prior quarter.
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Leadership Reshuffle Signals Strategic Push
As part of a broader transformation initiative, TCS has appointed Aarthi Subramanian as its new Chief Operating Officer, Executive Director, and President, effective May 1. Subramanian previously served as Chief Digital Officer at Tata Sons, where she led digital innovation across the conglomerate.
Additionally, Mangesh Sathe has been named Chief Strategy Officer. Formerly the CEO of Tata Strategic Management Group, Sathe will now lead TCS’s global consulting business and oversee merger and acquisition strategies. “These appointments are part of our strategic vision to scale talent and build partnerships in emerging tech areas,” said Krithivasan, emphasizing the company’s focus on strengthening leadership amid rapid technological shifts. The developments underline TCS’s efforts to adapt to evolving global headwinds while reinforcing its long-term growth strategy through leadership renewal and talent investment.