TCS has just inked a contract with the Ministry of External Affairs to manage issue of passports. It has also acquired Citigroup Global Services in an all cash deal for $505 million, adding to it’s headcount by around 12,500 Citi employees.

On the HR front, however, there has been a lot of action, which began with firing 20 employees with faked resumes, followed by the company’s decision to postpone promotions. And now, what employees believe to be the unkindest cut of all - reduction in variable pay.

The company is said to be mulling over a decision to reduce a part of variable pay for Q209 (Jul-Sep), thanks to the unprecedented financial meltdown. This means close to 70,000 employees will be affected by this move.

TCS employees are a confused lot, mainly on account of what they believe are conflicting signals sent out by the company; buying out Citi’s back office ops for $505 million in cash, and then asking employees to take a cut in variable pay.

Here are a couple of interesting articles on this issue I’d read some weeks ago;