TCS, an Indian IT company, has not laid off any employees so far, but is reportedly taking cost-saving measures. According to a recent report, current employees at big IT companies, including TCS, may experience variable pay cuts, and there may be a delay in the onboarding of new employees.
IT companies might announce variable pay cuts in Q4 of FY23. While employees in lower positions may not be affected significantly, those in the mid-to-higher range may experience cuts based on business unit performance.
As a result of rising inflation and a macroeconomic slowdown, big IT companies will also continue to keep their hiring pace low. The current slowdown has affected IT companies’ hiring and expansion plans due to economic uncertainties, resulting in a slowdown in headcount growth.
TCS, which has always reported increased headcount in every quarter, reported a decrease in headcount for the first time in the third quarter of FY23. However, this has not affected its growth, and the decrease is not due to global uncertainties. Although TCS has announced that it has no plans to lay off employees and will not take this approach to save costs, the company is taking a conservative approach by having a negative headcount for the first time.
The company has been cautious in its approach to hiring new people. The IT sector’s ongoing uncertainty is causing companies to take measures to save costs and reduce headcount growth. Despite TCS’s lack of layoffs so far, the company is adopting a conservative approach and implementing variable pay cuts to navigate the current economic uncertainties.
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