This is a wrong move by TCS. Infact this would never happen in another TATA company. TCS is the only company that is run in a non TATA style. All other TATA companies , employees are the king .
TCS cannot inflate manager salaries when the going is good and have foot soldiers suffer when things go bad. This is bad management.Why not just reduce expectations? Can any company make profits all the time? there will be good and bad times.You don't punish when the going is bad and do nothing when its good ( or rather only the management enjoys the fruits).
If it goes this way there should be a MASS quitting .. only then will they learn a lesson.