In what could be an indicator to the tough times ahead for IT companies, Tata Consultancy Services [ Get Quote ] plans to cut employees' salaries.

In an internal note sent to employees, TCS said that the company had not met its the third quarter internal economic value-added (EVA) target and as such it plans to make up for the losses with a cut in the variable pay given to employees.

The slowdown in the United States, the subprime crisis and the rising rupee are gradually taking a toll on the performance of Indian IT companies and employees are bearing the brunt of it.

Is this a sign of more trouble to follow for the IT sector? Are the days of high salaries and bonuses  over? Is the TCS move good if it were to be a short-term strategy? Do you think more companies will cut staff wages? Tell us