TCS CEO’s ₹26 Crore Package Sparks Debate as 12,000+ Employees Face Layoffs

Tata Consultancy Services (TCS) has declared that it will lay off two per cent of staff in the span of FY26. Of these, about 12,000 jobs will be lost, mostly, middle level and senior managerial positions. TCS the largest Indian IT services company is also usually regarded as the bellweather of the Indian IT industry and, indeed was once viewed as effectively having a government job, as far as job security is concerned.

Its new news concerning layoff has not only rocked the boat in the field of IT but has also put the paycheck of its CEO under the spotlight.

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The income of TCS CEO

As per the CNBC report, the income of CTO K Krithivasan stood at 26.52 crores in FY25. This was comprised of a salary of 1.39 crore, benefits of 2.12 crore and perquisites and allowances of 23 crore and commission.

One of the users of X questioned how the top management and the CEO could not be able to stretch out an arm and cut down their pay a little to save some 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,” the 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.

“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 person added on X.

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The pay of the TCS CEO polarises the opinion

As others pondered whether a CEO can afford to cut their pay to save some money, some of the X users have expressed how this TCS layoff does not appear to be a cost-saving measure.

In an interview with Moneycontrol by TCS CEO and MD K Krithivasan, said the layoffs are “driven by where there is a skill mismatch or where we think we have not been able to deploy someone.”

Some social media users proceeded to justify the salary of the company CEO as TCS is not a charity.

TCS CEO pay:₹35cr
Top 5 leadership:₹40cr
Avg employee:₹15 lacs

If top 100 took small paycuts, it can save 12,000 jobs

Their lives wont be terrible at ₹2.5cr pay vs ₹3cr
For 12000 families, lives will be miserable at 0 pay vs ₹15 lacs

AI is real; mass layoffs need not be pic.twitter.com/OEnWH2ZCIg

— Praveen Chakravarty (@pravchak) July 28, 2025

“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.

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