📉 TCS Cuts Jobs, VW Bleeds Billions

☀️ Happy Monday — and welcome back to your regularly scheduled brew!

Whether you spent the weekend dodging the rain, binge-watching the Olympics, or just trying to forget your unread Slack messages, we’ve got the perfect blend of business buzz and market masala to ease you into the week.

From influencers in the taxman’s crosshairs to Nestlé’s big goodbye and whisky wars brewing with the UK — let’s jump back into the kettle! 🍵👇

The weekend's over but worry not—we’re back with your weekday fix of stories strong enough to wake up the markets. From TCS pink slips to Trump tariffs, from cat food stealing the spotlight to VW’s luxury stumble, we’ve poured you a strong cup of what’s hot. Sip away! 😎☕️

🍵 Chai Shots

• 🌐 TCS to slash 12,000 jobs in FY26: Tata Consultancy Services is planning a 2% workforce reduction, mostly targeting mid-to-senior level staff, as it accelerates its pivot toward AI and advanced tech solutions. Employee unions are demanding government intervention.

• 🚗 Volkswagen loses $1.5B to US tariffs: Europe’s biggest automaker reported a $1.5 billion drop in profits for H1 2025, slashing its full-year outlook. Audi and Porsche were hit especially hard, with profits plummeting due to lack of US manufacturing. More in the Big Brew 👇

• 💳 UPI’s zero-fee era may not last: RBI Governor Sanjay Malhotra has signaled that the government-subsidized model for UPI payments may be unsustainable in the long term. While India currently bears the cost to keep transactions free, Malhotra stressed that some form of cost recovery is inevitable to maintain the growing infrastructure.

• 📲 Influencers and F&O traders now officially recognised as professionals by Income Tax Dept: The I-T department has introduced five new profession codes in ITR-3, finally acknowledging digital-era careers like social media influencing and speculative trading. The move aims to improve tax accuracy and compliance as high-earning influencers—some with incomes topping ₹5 crore—were previously misreporting or filing under vague categories.

🌟 Market Masala

• 🔻 Bears in control: Friday saw Sensex tumble 721 points to 81,463 and Nifty dip 225 points to 24,837, capping off a fifth consecutive week of losses—a rare streak not seen in recent years.

• 👋 Nestlé India’s CMD exits after a decade of transformation: Suresh Narayanan, who helped revive Maggi post-ban and reshaped Nestlé India into a growth engine, will retire on July 31. Under his leadership, the company’s profits rose nearly 6x, new products flourished, and shareholder value soared — all while steering clear of M&As and building trust after one of India’s biggest food crises.

• ⏳ RBI extends IndusInd Bank’s interim leadership: The Reserve Bank of India has approved a one-month extension for IndusInd Bank’s interim executive committee, originally set to end on July 28. Now active till August 28 or until a new MD & CEO steps in, the team—headed by Soumitra Sen and Anil Rao—will continue steering the bank under board oversight.

• 💊 India refuses to play along with pharma’s patent 'evergreening': Commerce Minister Piyush Goyal reaffirmed that India won’t allow pharma companies to stretch patents through minor tweaks, a practice called evergreening. Despite pressure from nations like the UK and Switzerland, India’s patent laws stay firm, ensuring affordable access to medicines and sending a strong signal in ongoing trade talks.

• ✈️ IndiGo sets global ambitions with new jets and MRO expansion: India’s largest airline is planning to boost its international capacity share to 40% by FY30, thanks to incoming A321 XLRs and leased wide-body planes. It’s also building a dedicated MRO facility in Bengaluru to support its growing fleet, despite macroeconomic turbulence and grounded aircraft challenges.

Looking at the Week Ahead 🕒

• FII sentiment and Q1 results from index-heavy firms will guide short-term direction.

• Key macro triggers include ECB’s inflation tone and any US-India tariff progress.

🌎 Global Masala

• 🌍 Wall Street shrugs off noise: The S&P 500 and Nasdaq ended the week at all-time highs, boosted by resilient earnings and optimism over a potential US-EU trade deal.

• 🍷 Europe holds its breath: The STOXX 600 dropped Friday but stabilized as EU trade reps hinted at progress with Washington. The tone ahead of the August tariff deadline remains cautious.

Looking at the Week Ahead 📅

• Trade negotiations between the EU and US could heavily influence investor sentiment.

• Earnings from global automakers and big tech will offer cues on sector health.

☕️ The Big Brew: Volkswagen's $1.5B Tariff Tantrum

Volkswagen just became the latest casualty in Donald Trump’s escalating tariff war, reporting a massive $1.5 billion hit to profits for the first half of 2025. The impact? Revised forecasts, shaken investors, and a major strategic rethink.

• 📉 From profit to pressure: VW slashed its full-year sales and margin outlook. It now expects operating margins between 4–5%, down from 5.5–6.5%, and zero growth in sales volume—a sharp reversal from earlier guidance.

• 🌜 Luxury gets hammered: Audi and Porsche, the luxury flag-bearers, bore the brunt of the tariffs. Without US manufacturing plants, their export-heavy models became unaffordable, with Audi’s profits down 64% and Porsche down over 90%.

• ⚖️ Hope for a deal: VW is leading industry calls for a 15% tariff cap similar to Japan’s agreement, hoping to avoid a 30% blow from August. But EU-US negotiations remain tense and uncertain.

• 💲 Silver lining for investors? Despite its woes, VW’s stock has surged 12% in five days, as markets price in long-term recovery and resilience.

What does this mean?

The auto industry is on the frontlines of global trade disputes. While EV demand and premium brand strength offer long-term hope, short-term volatility is here to stay. For Indian investors, automakers like Tata Motors and Maruti could be indirectly impacted by shifting global supply chains and trade flows.

🚀 Startup Scoop

• 🐱 Drools sees feline revenue boom: Cat food now drives 35–40% of pet food startup Drools' earnings, with its PurePet Cat line seeing record demand. Priced affordably at 40% below premium rivals, it's become India’s largest cat food brand with 2,200 tonnes in monthly sales.

• 🍕 EatClub raises $22M for expansion: Cloud kitchen operator EatClub, parent of Box8 and Mojo Pizza, is raising nearly ₹185 Cr led by Tiger Global. With participation from A91 Partners and 360 One Asset, this round lifts its post-money valuation to $540M—up 80% since 2021.

• 🔁 MoEngage reverse-flipping to India: Customer engagement SaaS platform MoEngage is set to raise $200M to cover the $100M tax bill required for relocating HQ back to India. The move follows a wave of reverse flips by Indian SaaS firms eyeing domestic IPOs.

🧐 Chai Break Trivia

🧠 Did you know honey never spoils — as long as it’s stored right? 🍯 Archaeologists even found 3,000-year-old honey in Egyptian tombs that was still perfectly edible!

But don’t go digging into that forgotten jar in the back of your kitchen — exposure to moisture or heat causes even honey to ferment or crystallise.

☕️ What’s Brewing Next?

• ✏️ TCS’ planned layoffs could trigger scrutiny from labour authorities as NITES urges the Ministry of Labour to investigate compliance with Indian employment laws.

That’s all for now—if Monday hit hard, just remember even VW can’t outrun the tariff man. Keep calm, pet a cat, and we’ll see you back here tomorrow for more chai-fueled headlines. 🐾☕️