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 per cent and 35 per cent of his/her gross salary, depending on employee rank, he said. Variable pay represents eight per cent of the total revenue of TCS, whose headcount is 130,000.

Ramadorai said the company is also looking into all aspects of cost reduction, including capex and infrastructure.