Synopsis
Tata Consultancy Services has decided to postpone salary hikes due to ongoing global uncertainties, particularly influenced by US tariffs. The company, which typically revises wages in April, will assess salary adjustments based on the evolving business environment.Key Takeaways
- TCS delays salary hikes amid global uncertainty.
- Employee count reached 607,979 at FY25 end.
- 42,000 freshers hired in the last financial year.
- Attrition rate increased to 13.3% in Q4 FY25.
- Revenue grew by 5.3% YoY to Rs 64,479 crore.
Mumbai, April 12 (NationPress) The prominent IT services firm Tata Consultancy Services (TCS) has postponed salary increases as management remains uncertain about the increment cycle amidst global instability caused by US tariffs.
TCS usually updates employee salaries in April each year. By the end of the fiscal year 2025, the workforce totaled 607,979, with an addition of 625 employees in the fourth quarter. Throughout the entire financial year, the company onboarded 42,000 fresh graduates.
The IT giant now intends to base salary adjustments on the changing business landscape as uncertainty continues to affect the sector.
The attrition rate for TCS in the fourth quarter rose to 13.3 percent, up from 13 percent in the previous quarter.
Milind Lakkad, TCS's chief human resources officer, stated, “We have hired 42,000 trainees in FY25, and the FY26 numbers will be similar or slightly higher. Decisions regarding salary hikes will be made throughout the year, taking into account the unpredictable business climate.”
Lakkad also emphasized that while campus hiring remains crucial for the company, the number of new hires will rely on the overall business climate and necessary skill sets.
TCS is actively seeking talent for specialized and emerging technology skills and plans to source talent globally, including from international markets.
Lakkad noted that the firm does not anticipate AI affecting hiring negatively, as the demand for personnel will increase due to AI-driven business programs creating new opportunities.
In the third quarter (Q3 FY25), TCS reported a decrease of 5,370 employees in its workforce.
The overall employee count experienced a decline in FY24, marking the first drop since its public listing in 2004. In contrast, TCS had added 22,600 employees in FY23 and over 103,000 in FY22.
For Q4, the IT major's consolidated net profit fell nearly 2 percent year-on-year (YoY) to Rs 12,293 crore. In the same quarter last year, the net profit was Rs 12,502 crore.
However, revenue from operations rose 5.3 percent YoY to Rs 64,479 crore for the quarter ending March 2025, up from Rs 61,237 crore a year prior.
