TCS senior staff lose quarterly bonuses as firm misses targets

Senior staff at Tata Consultancy Services (TCS) will not receive quarterly bonuses after the firm missed its internal performance targets. An internal memo quoted chief human resource officer Sudeep Kunnumal saying associates in C3A grade and above will get no quarterly variable allowance this quarter. The memo added that junior‑level staff will receive 100 per cent of their eligible pay. C3A and higher grades include employees with about seven to ten years of experience up to senior‑level management. Employees said the company usually awards 50‑100 per cent of variable pay, making this the first explicit zero‑bonus notice in at least two years. The move comes as TCS reported its weakest September‑quarter sequential revenue growth in three years, pointing to continued pressure on traditional IT services demand. AI‑related revenue, however, jumped nearly 20 per cent, and investors cheered as the stock rose as much as 6.2 per cent. Meanwhile, the Trump administration suspended TCS, Infosys and HCLTech from a key green‑card program, a step aimed at curbing fraud and protecting American jobs. Mails to TCS received no comment, and the memo did not say when bonuses might resume.

Context

Quarterly variable allowance is a common part of pay in Indian IT firms, rewarding employees when company targets are hit. The US green‑card suspension limits Indian outsourcers’ ability to move staff to the United States, affecting project staffing and revenue prospects.