TCS Bids Goodbye to Layoffs: Relief for Employees

India’s largest IT services company Tata Consultancy Services (TCS) has officially announced that its layoff phase has come to an end. The company has also confirmed that it will resume its regular annual salary increment cycle starting April 1. This decision comes after a challenging period marked by workforce reductions and delayed salary revisions, indicating a return to stability within the organization.

In 2025, the company had reduced its workforce by around 2%, impacting thousands of employees, as part of a restructuring initiative aligned with emerging technologies such as artificial intelligence. TCS has now stated that this phase is complete and it is returning to normal operational processes, including performance-based salary hikes. Employees with top performance ratings are expected to receive double-digit increments, while most others may see hikes in the range of 4.5% to 7%.

The company’s transition back to normalcy is supported by strong financial performance. Its Q4 profit rose 12.2% year-on-year to ₹13,718 crore, driven by robust deal wins and improving global demand in the IT sector. With this development, TCS employees are finally able to breathe a sense of relief as the company moves into a more stable growth phase.