TCS to lay off 2% of workforce in FY26, 12,000 employees to be impacted, mostly in middle and senior management. TCS, India’s largest IT services company, was once considered as secure as a government job. Now the bellwether of Indian IT industry is shedding jobs.
The news has sent shockwaves across the industry with many asking why layoffs when the company is profitable and revenues are growing. It has also brought the spotlight on TCS CEO K Krithivasan’s compensation.
CEO’s Rs 26.52 Crore Salary Under Scrutiny
According to CNBC, TCS CEO K Krithivasan earned ₹26.52 crore in FY25, including a base salary of ₹1.39 crore, ₹2.12 crore in benefits, perquisites and allowances, and ₹23 crore in commission. Following the layoffs announcement, many X users questioned whether the CEO and other top executives should take a pay cut to save jobs.
“Their lives wont be terrible at ₹2.5 crore pay vs ₹3 crore. For 12000 families, lives will be miserable at 0 pay vs ₹15 lacs,” one user wrote.
“To build a ‘stronger, future-ready company’, 12,000 employees need to be sacked. Of course, the company is more important, what happens to the lives of 12,000 is of no consequence. K. Krithivasan, CEO TCS, makes ₹26 crores annually,” another user pointed out.
“Is it justified for a chairman to take a salary of 150 crore yearly. While thousands are fired,” an X user asked, while massively inflating the figure.
Divided Opinions on Pay Cuts and Layoffs
“Deeply concerning to see a profitable TCS layoff 12K+, while framing as a move to be ‘future-ready.’ This sets a worrying precedent for IT industry. The human cost for these families is far too high for TCS with a 6% rise in profits. Should find a more humane solution for this,” one user added.
However, several others defended the CEO’s pay, arguing that the layoffs are not a cost-cutting move but a restructuring to align skills with the company’s needs.
“This is one of the stupidest comparisons…They are cutting jobs because there is an over supply…Not to save money..A CEO gets paid because he has a job…the employee lost the job .. because there is no work to be done,” said one X user named Joyal K Joseph.
“The same argument then applies for the whole of India- if every tax payer pays another 10% extra tax then poverty can be eliminated. If you contribute 5000 to your domestic help, they can improve their lives significantly,” another X user pointed out.
TCS CEO K Krithivasan has clarified in an interview with Moneycontrol that the layoffs are “driven by where there is a skill mismatch or where we think we have not been able to deploy someone,” indicating that the company’s restructuring is focused on future business needs rather than financial savings.