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TCS CEO’s ₹26 crore paycheck in spotlight amid 12,000 layoffs: 'Running a company, not a charity’
As TCS announces layoffs, the CEO's annual salary of ₹26.52 crore has come under scrutiny, raising questions about the fairness of leadership compensation
Tata Consultancy Services (TCS) has announced that it will fire two per cent of its workforce over the course of FY26. The workforce reduction will impact around 12,000 employees, primarily in middle and senior management. TCS, India’s largest IT services firm, is generally considered the bellwether of the Indian IT industry and had even been seen as akin to having a government job in terms of job security.
The recent announcement about layoffs has not only sent shockwaves through the IT industry but also brought its CEO’s paycheck into focus.
TCS CEO's salary
According to CNBC, TCS CEO K Krithivasan earned ₹26.52 crore in FY25. This included a base salary of ₹1.39 crore, ₹2.12 crore in benefits, perquisites and allowances, and ₹23 crore in commission.
One X user wondered why the top leadership and the CEO could not take small pay cuts 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,” 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.
TCS CEO’s salary divides opinion
While some wondered whether a CEO should take a pay cut to save money, several X users pointed out that the TCS layoffs do not seem to be a money-saving exercise.
TCS CEO and MD K Krithivasan, in an interview with Moneycontrol, said the layoffs are “driven by where there is a skill mismatch or where we think we have not been able to deploy someone.”
Several social media users defended the CEO’s salary, saying TCS is not running a charity.
“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.
(Also read: TCS layoffs sound alarm bells for senior techies, managers; CEO says ‘A very senior person may not…’)
