TCS Faces Criticism As CEO Earns ₹26.5 Crore, AI Transition Blamed For 12,261 Global Layoffs

Key Highlights:

- CEO K. Krithivasan’s annual pay is 330x the median TCS employee salary.

- 12,261 employees to be laid off globally, largely from mid-senior levels.

- Layoffs linked to AI-driven role realignments, not cost-cutting.

Mumbai: Tata Consultancy Services (TCS) CEO K. Krithivasan earned a total annual compensation of Rs 26.5 crore in FY25, marking a 4.6 percent increase from the previous year, as per the company's latest annual report. His package included a base salary of Rs 1.39 crore, Rs 2.12 crore in benefits and allowances, and Rs 23 crore in commission. Notably, his pay was nearly 330 times the median salary of a TCS employee, sparking backlash online.

Executive Compensation Raises Eyebrows

Several other top executives at TCS also received sizable compensation. Former COO and Executive Director NG Subramaniam earned Rs 11.55 crore till his retirement in May 2024, which included Rs 30 lakh in base salary, Rs 7.24 crore in benefits, and Rs 4 crore in commission. Independent directors such as Hanne Sorensen and Pradeep Kumar Khosla earned Rs 2.74 crore each, while Keki Mistry received Rs 3.06 crore. Interestingly, Chairman N Chandrasekaran was paid only Rs 2.1 lakh as sitting fees and took no commission.

Layoffs Hit Over 12,000 Employees

At the same time, TCS announced it would lay off around 2 percent of its global workforce — approximately 12,261 employees — primarily from mid- and senior-level roles. The company attributed the move to challenges in redeploying staff whose skills no longer matched the firm’s evolving needs, particularly in the face of rapid technological shifts driven by artificial intelligence (AI).

Backlash from Industry and Public

The stark contrast between soaring executive pay and widespread job losses has triggered criticism from netizens and industry observers. Economist and data analyst Praveen Chakravarty suggested that moderate pay cuts among the top 100 TCS executives could potentially save thousands of jobs. He emphasized that AI-related transformation need not translate into mass layoffs, especially when minor leadership pay reductions could make a significant difference to employee livelihoods.

(With IANS Inputs)