New Delhi, Aug. 27 -- Tata Consultancy Services (TCS) has reduced the variable compensation paid to employees in its mid- and senior-level positions for the April-June quarter, reported Moneycontrol, citing people familiar with the development.

The IT major disbursed an average of 60-70% of the eligible variable pay during the first quarter, with the reduction coming as the company faces pressure on operating margins while continuing investments in artificial intelligence (AI), according to the report.

Junior employees, who make up the largest share of the TCS workforce, continued to get their quarterly bonus in full.

The variable compensation distributed by TCS in the first quarter was below the levels seen in the preceding two quarte...