TCS halts senior hiring and freezes salary hikes after 12,000 layoffs, while Honasa Consumer bets on beauty-tech products to drive future growth.

🧭 Introduction: India’s Tech Landscape Shifting Rapidly

In a significant shakeup for India’s IT sector, Tata Consultancy Services (TCS) has intensified its cost-cutting drive by freezing salary hikes and halting senior-level hiring, just days after announcing layoffs that will affect 12,000 employees globally. Meanwhile, Honasa Consumer, the parent of Mamaearth, is doubling down on innovation with a bold beauty-tech product strategy aimed at sustaining growth amid slowing sales.

These simultaneous moves underscore the changing dynamics of India’s corporate tech environment, with old giants facing margin pressure and new-age players racing ahead with innovation.

⚠️ TCS Layoffs and Cost Controls: A Sign of Deeper Troubles

📉 TCS Layoffs 2025: What’s Happening?

TCS recently confirmed its decision to lay off 12,261 employees, which accounts for around 2% of its global workforce. This marks India’s largest IT layoff in recent years and has sent ripples across the tech industry.

“This may be a canary in the coal mine moment for IT services,” said a Jefferies report, indicating that the move reflects soft demand and weak growth outlook.

⛔ Key Cost-Control Moves by TCS

• ❌ Salary hikes frozen for all levels globally
• 🚫 Senior-level hiring paused indefinitely
• 🧍 Bench employees are being released across major delivery centers
• ⏳ Onboarding delays of up to 65+ days for lateral hires

These moves come as the IT giant struggles with softening global demand, increasing pressure on margins, and a focus on maximizing resource utilization.

📊 Latest Numbers: Hiring Freeze Reflects Industry-Wide Slowdown

• 🧑‍💻 Net headcount addition: Only 5,000 employees added in Q1 FY26
• 🏢 Peer performance: Rivals like Infosys and HCL Tech have eased off hiring
• 🧾 Comparison to past slowdowns: Similar large-scale layoffs were seen in 2017 and again between 2020–2022, though less publicly announced

The Ministry of Electronics and IT is currently in discussions with TCS, seeking more clarity around the decision and its impact on employment.

💥 NITES Union Calls Layoffs “Illegal”

The Nascent Information Technology Employees Senate (NITES) has stepped in, calling the layoffs “illegal” and demanding government intervention. In a formal letter to Labour Minister Mansukh Mandaviya, the union stated:

“Over 600 lateral hires have been sidelined without explanation while top executives continue to draw high compensation.”

NITES is pushing for a halt to the layoff process and reintegration of affected employees, escalating pressure on TCS management.

💬 Industry Reactions: A New Era for Indian IT?

🔄 From Headcount to Outcome-Based Models

Former Tech Mahindra CEO CP Gurnani reacted to the TCS layoffs with a Bollywood reference, quoting Sholay’s famous line “Kitne aadmi the?” to suggest a shift in how IT success is measured.

“It’s time Indian IT moves from headcount obsession to output and outcome-based pricing,” said Gurnani.

He emphasized the need for platforms, innovation, and application-driven services, predicting that India will lead the next wave of digital transformation.

🌸 Honasa’s Beauty-Tech Pivot: A Bold Bet on the Future

🧴 What Is Honasa Planning?

While legacy IT firms tighten belts, Honasa Consumer—best known for its Mamaearth line—is entering high-margin beauty-tech territory. According to sources, the company is developing:

• 💡 LED Light Therapy Devices
• 💆‍♀️ Laser Face Masks & Facial Rollers
• 🧴 AI-powered skin and hair care tools
• 🌐 Smart beauty gadgets, inspired by Korean skincare trends

📈 The Derma Co. & Dr Sheth’s Lead the Charge

Honasa’s focus is shifting toward its newer brands:

• The Derma Co. and Dr Sheth’s grew over 30% YoY in FY25
• Combined, they are expected to outperform Mamaearth in FY26

On the Q4 FY25 earnings call, CEO Varun Alagh highlighted this shift, emphasizing premiumisation and tech-led innovation as growth levers.

📊 Honasa FY25 Financial Snapshot

Despite the drop in profit, Honasa remains confident that premium beauty-tech will unlock new value streams.

TCS Official Website (for press release / credibility):
🔗 https://www.tcs.com

❓ FAQs: Top Questions on TCS & Honasa’s Moves

1. Why is TCS laying off 12,000 employees?

TCS is trimming its workforce due to weak global demand, cost pressures, and a renewed focus on efficiency and utilization.

2. Are other IT companies expected to follow?

Analysts expect similar cost-control measures from other IT majors, although no peer has announced layoffs at this scale yet.

3. What is Honasa’s beauty-tech strategy?

Honasa plans to launch high-end skincare devices like laser masks and LED therapy tools to capture the growing beauty-tech segment.

4. Will Honasa abandon Mamaearth?

No. While Mamaearth has plateaued, it remains core to Honasa’s portfolio. The company is expanding into premium categories through its other brands.

5. Is the government taking action on the layoffs?

Yes. The IT Ministry is engaging with TCS to understand the rationale and may push for enhanced skilling and job transition support.

✅ Final Thoughts: Winds of Change in Indian Tech

TCS’s massive layoffs and Honasa’s tech-forward innovation strategy illustrate a tectonic shift in India’s tech and consumer landscape. As traditional IT companies face an existential rethink, agile, innovation-driven firms like Honasa are writing the next chapter.

📣 Call to Action:

👉 What do you think about TCS’s job cuts and Honasa’s tech play?

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