TCS CEO’s ₹26 crore paycheck in spotlight amid 12,000 layoffs: 'Running a company, not a charity’

By Admin

30 Jul, 2025

The recent announcement by Tata Consultancy Services (TCS) regarding a major workforce reduction has sparked widespread debate not just about the layoffs, but about the compensation of its top leadership. With over 12,000 employees set to be let go in FY26, primarily from middle and senior management, many are questioning the fairness of CEO K Krithivasan’s ₹26.52 crore annual salary.

Job Cuts and a High Paycheck: A Jarring Contrast

India’s largest IT services firm, long considered a symbol of job security in the tech industry, is undergoing a strategic shift. TCS announced that it would reduce its workforce by 2% to become more "future-ready." However, the timing of this move alongside the revelation of the CEO’s hefty compensation has raised eyebrows.

According to CNBC, Krithivasan’s FY25 salary includes:

• ₹1.39 crore in base pay
  
  

• ₹2.12 crore in benefits, perquisites, and allowances
  
  

• ₹23 crore as commission
  
  

This compensation has triggered a flood of reactions on social media, especially on platform X (formerly Twitter). Critics argue that top executives could have considered modest pay cuts to preserve jobs and reduce the burden on employees. “Their lives won’t be terrible at ₹2.5 crore vs ₹3 crore. But for 12,000 families, life becomes miserable at 0 pay vs ₹15 lakh,” one user noted.

Public Backlash and Online Outrage

Social media has been abuzz with posts condemning the decision, calling it “deeply concerning” and questioning the company’s moral compass. Some users pointed out the paradox of laying off thousands despite a reported 6% profit increase. "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,” wrote another user.

Others raised broader concerns about executive compensation across corporate India. One user rhetorically asked, “Is it justified for a chairman to take ₹150 crore yearly while thousands are fired?” though the figure was clearly inflated.

Supporters Say It’s Just Business

While criticism dominates much of the online discourse, some have come to Krithivasan’s defense. Supporters argue that the layoffs aren’t about saving money but about realigning resources and addressing skill mismatches.

K Krithivasan himself, in an interview with Moneycontrol, stated that the decision was based on factors like skill misalignment and challenges in deploying certain employees not purely financial motives.

One X user responded sharply to critics: “They are cutting jobs because there is an oversupply... 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.”

Others pointed out the flawed logic of using moral arguments in business strategy. “If every taxpayer pays 10% more tax, poverty can be eliminated. If you contribute ₹5,000 to your domestic help, their lives can change. But that’s not how systems work,” argued another user.

The Larger Debate: Ethics vs. Efficiency

This incident opens up a larger conversation about leadership accountability, corporate ethics, and the role of empathy in business decisions. Should top executives take symbolic pay cuts during tough times? Or should companies be allowed to make hard decisions strictly based on efficiency and performance?

As TCS moves ahead with its restructuring plan, the pressure is on not just to manage operations efficiently, but also to navigate public perception and employee morale in an increasingly watchful environment.

In the age of social media and heightened employee awareness, corporations may not always be able to separate business decisions from their ethical implications. And as the TCS case shows, leadership compensation is no longer just a boardroom matter it’s a public debate.