Mumbai—Tata Consultancy Services (TCS), India’s largest IT services provider, has decided to delay its annual salary hikes as global economic uncertainty—particularly due to evolving US tariff policies—casts a shadow over business projections.
TCS traditionally implements salary revisions every April. However, this year, the company is holding off on hikes, awaiting greater clarity on the macroeconomic environment.
As of the end of FY25, TCS employed 6,07,979 people, adding 625 employees in the fourth quarter alone. Throughout the fiscal year, it hired 42,000 freshers. Despite the overall additions, the company saw a quarterly uptick in attrition, which rose to 13.3% in Q4, up from 13% in the previous quarter.
Milind Lakkad, Chief Human Resources Officer at TCS, said: “We have onboarded 42,000 trainees in FY25, and the number for FY26 will be similar or slightly higher. As for salary increments, we will make that decision during the year based on how the business environment evolves.”
He emphasized that campus hiring continues to be a strategic focus for the company. However, future hiring and net additions will be guided by project demand and the need for specific skill sets.
TCS is also planning to strengthen its talent pool by hiring specialists in emerging and niche technologies, including from international markets. Lakkad noted that AI adoption is not expected to reduce hiring but rather create new job opportunities, as AI-enabled business initiatives demand skilled professionals.
Despite a modest hiring in Q4, TCS had reported a net reduction of 5,370 employees in Q3 FY25. FY24 marked the first annual decline in headcount since the company’s listing in 2004. By comparison, TCS added 22,600 employees in FY23 and over 1.03 lakh in FY22.
In terms of financial performance, the company reported a consolidated net profit of ₹12,293 crore for Q4 FY25, a 2% decline year-on-year from ₹12,502 crore in the same quarter last year. However, revenue from operations rose by 5.3% YoY to ₹64,479 crore, compared to ₹61,237 crore in Q4 FY24. (Source: IANS)
