Layoffs Over: TCS Resumes Pay Cycle After Year, Coinciding With Abuse and Conversion Cases

New Delhi: After a year marked by job cuts and delayed pay revisions, Tata Consultancy Services has announced a return to its regular annual salary increment cycle starting April 1. The move signals a stabilisation phase for India’s largest IT services firm, which had paused its usual appraisal rhythm amid a broader restructuring push.

Back to Normal After Turbulence

In mid-2025, TCS had trimmed nearly 2% of its global workforce, around 12,000 roles, as part of a strategic reset aimed at aligning with emerging technologies like artificial intelligence and automation. That exercise also disrupted the company’s traditional pay cycle, leaving many employees uncertain about increments and long-term job security.

With the rationalisation process now complete, the company says it is returning to business as usual. The restoration of the April increment cycle is being seen internally as a signal that the most disruptive phase is over, even as the industry continues to evolve.

Shadow of Nashik Controversy

The announcement, however, comes at a sensitive time. TCS has been under scrutiny over a serious case reported from its Nashik BPO unit in Maharashtra. Allegations include sexual harassment and claims of forced religious conversions involving employees at the facility.

While investigations are ongoing, the incident has raised concerns around workplace safety, internal grievance redressal systems, and corporate accountability. The company has not publicly detailed its internal findings yet, but officials indicate that due process is being followed. The controversy has added pressure on TCS at a time when it is trying to reassure employees and rebuild confidence after last year’s layoffs.

Wider Industry Still Under Stress

TCS’s move contrasts with a broader trend of continued job cuts across the tech sector. Oracle, for instance, has recently initiated fresh round of layoffs as part of its restructuring strategy. Global firms are increasingly tightening costs, investing in automation, and reducing roles that no longer align with future business models.

This ongoing churn has kept employees across the IT industry on edge, with hiring slowdowns and restructuring becoming common.

What It Means for Employees

For TCS staff, the return of annual increments offers some relief after months of uncertainty. It suggests that the company is entering a more stable phase, even as it continues to adapt to technological shifts. At the same time, the Nashik case remains a critical issue, with its outcome likely to influence perceptions around workplace culture and governance.

Read More: Major Twist In TCS Nashik Case: ‘Mastermind’ Nida Khan Found To Be Telecaller, Not HR Head, Say Sources