TCS Layoffs Job Cut possible & No salary hike this year: S Ramadorai

The news is not good for the employees of TCS, which is one of the major IT or Information Technology companies in India. The managing director of TCS, S Ramadorai, has reported that there may be job cuts or layoffs at TCS or Tata Consultancy Services, if the economic situation worsens. The recession is taking a toll on all sectors. This latest development by TCS may be setting the benchmark for the rest of the IT industry in India.

The Indian Corporate leaders know the how important is the timing and they are experts in timing their announcements to the best of benefits. It is a well known fact that employees in India have their financial year from April to March, and the salary hikes, if any, are given in March to April time. So this is the time when the employees will be expecting some good bonus and salary hikes and the timing of such a comment is just right to set the tone. The biggest concern here is that TCS is the major IT company of India (and the world) and other small and medium size companies tend to follow the leaders. Now, if TCS goes for a no salary hike, then most of the industry might see that pattern.

It is equally true that the world is in recession and the IT companies in India have a major dependence on foreign conditions hence their work in getting impacted and so are the profits. Another problem has been with the heavily fluctuating USD-INR forex or foreign exchange prices, which causes a lot of problems in hedging and affects the balance sheets of the companies.
Then comes the other effects, like that of Satyam frauds, which have tarnished the image of the Indian Corporate World. So, though the heads of the IT companies may be trying hard, they are also bound by the economic constraints.

As far as the salary hike or pay hike is concerned, it is made clear by S Ramadorai that there will be No Salary hike for TCS employees this year.

What is the total no. of employees of TCS?
Total No. of employees of TCS is around 130,000 as of now, worldwide.

Which locations will be affected by the TCS Job Cuts?

Any other news about TCS layoffs
  As per IndiaTimes, Adding further that TCS has frozen "lateral intake" he said the company is reviewing variable pay component on employee salaries. The variable pay component of TCS employees differs between 22 per cent and 35 per cent of his/her gross salary, depending on employee rank, he said. Ramadorai said the company is also looking into all aspects of cost reduction, including capex and infrastructure
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