TCS to Halt Senior Hiring and Pause Annual Salary Hikes

Tata Consultancy Services (TCS), India’s largest IT services firm, has halted senior-level hiring and frozen annual salary hikes globally, as per news reports. The company has already begun laying off 12,000 employees, or 2% of its 600,000-strong workforce, triggering unease across the sector. 

The restructuring includes significant onboarding delays, a stringent bench policy, and broader cost-control measures that analysts say may be mirrored by other IT giants facing similar pressures.

Hiring Freeze and Delayed Onboarding 

TCS has delayed the onboarding of experienced hires by over 65 days, according to news reports. The company has implemented a strict policy requiring bench employees to find a project within 35 days or face termination. Hundreds of such staff in cities including Hyderabad, Pune, Chennai and Kolkata have already been impacted.

Layoffs Spark Sector-Wide Debate and Regulatory Scrutiny

The Tata Group’s move has prompted intense boardroom discussions across the industry. As per news reports, Other firms had already begun pivoting early in response to AI transformation. Silent workforce restructuring has been underway for nearly two quarters across the sector.

Employee welfare body NITES wrote to the labour ministry, terming the layoffs “illegal.” This is the 3rd complaint from the union against TCS. Previous letters raised issues over the 35-day bench policy and delays in onboarding nearly 600 experienced hires. Meanwhile, the union government has sought clarity from TCS over its layoff rationale.

Also Read: TCS CEO Krithivasan Clarifies 12,000 Job Cuts Are Not Driven by AI!

TCS Share Price Performance 

As of 29 July, 2025, at 11:50 AM, TCS share price is trading at ₹3,049 per share, reflecting a decline of 0.98% from the previous closing price. Over the past month, the stock has declined by 11.93%.

Conclusion

TCS’ decisions reflect growing cost and efficiency pressures in a rapidly shifting technology landscape. As automation and AI reshape hiring models, Indian IT majors may be forced to follow suit or risk lagging behind in a more demanding, productivity-led global market.

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