TCS senior staff in C3A grades and above will miss out on variable pay for the September quarter. "Our performance for the quarter fell short of internal targets," said Sudeep Kunnumal. While junior employees get full pay, the firm reported its weakest sequential revenue growth in three years this time.
"For associates C3A grade and above, there will be no QVA (quarterly variable allowance) this quarter. This decision was taken after careful consideration as our performance for the quarter fell short of internal targets," said Sudeep Kunnumal, chief human resource officer in the memo.
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Associates in C3A and above grades are employees with typically 7-10 years of experience up to senior-level management. The junior-level employees will get 100% of the eligible pay, the memo added.
Mails sent to TCS did not elicit a response. Employees, speaking on the condition of anonymity, said typically the company awards 50-100% of variable pay and it is the first time in at least two years that the company has explicitly said no bonuses shall be awarded.
This comes as the country's largest IT firm reported its weakest September-quarter sequential revenue growth in three years, signaling continued pressure on traditional IT services demand even as AI-related revenue jumped nearly 20%. The uptick in AI revenue, however, was cheered by investors on Friday as the stock rose as much as 6.2%.