TCS has started sending increment letters to its employees. This follows the company’s announcement to lay off 2 percent of its global workforce.
According to sources on Tuesday, the country’s largest IT services company, Tata Consultancy Services (TCS), has rolled out salary hikes ranging from 4.5 per cent to 7 per cent for a majority of its employees. The Tata Group company began sending increment letters late Monday evening, with the raises effective from September. The company has yet to provide an official response to an email query.
Over the past two months, TCS has made a series of noteworthy announcements. Initially, it deferred pay hikes due to uncertain market conditions. This was followed by a surprise announcement to lay off 2 per cent of its workforce, or around 12,000 employees. However, the company then announced a pay hike for 80 per cent of its staff.
According to media reports, most employees eligible for the hike are in the lower to mid-level hierarchy. Sources added that top performers have received pay raises of over 10 per cent.
In its June quarter earnings report, the company’s attrition rate had risen to 13.8 per cent.
New unit focused on artificial intelligence
Tata Consultancy Services (TCS) has launched a new unit focused on artificial intelligence (AI) and service transformation. Amit Kapur, who currently oversees TCS’s operations in the UK and Ireland, will lead this new initiative as the Chief AI and Services Transformation Officer.
This change was shared through an internal message by TCS Chief Executive Officer K Krithivasan. In this update, it was mentioned that Kapur will be stepping into his new role while another leader, Singhvi, will take over his previous responsibilities.
The goal of this new AI unit is to combine all of TCS’s existing AI teams and their skills. This collaborative effort aims to work closely with various departments within the company to strengthen TCS’s influence and effectiveness in the field of AI.
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