Kolkata: As part of cost cutting measures to tackle global economic downturn, IT major TCS today said job cuts are possible and also ruled out salary hikes next year.
TCS managing director S Ramadorai said: “there would be no hike in salaries in the forthcoming year” and added that “job cuts are possible if the situation worsens”.
Adding further that TCS has frozen “lateral intake” he said the company is reviewing variable pay component on employee salaries.
The variable pay component of TCS employees differs between 22% and 35% of his/her gross salary, depending on employee rank, he said.
Variable pay represents 8% of the total revenue of TCS, whose headcount is 1.3 lakh.
Ramadorai said the company is also looking into all aspects of cost reduction, including capex and infrastructure.