AI Won’t Lead to Mass Layoffs Says TCS CEO K Krithivasan

Tata Consultancy Services (TCS) chief executive K Krithivasan has clarified that artificial intelligence (AI) is expected to change job roles rather than lead to large‑scale redundancies, while the company continues to adjust its workforce and expand AI‑related services. 

AI Impact on TCS Workforce 

Speaking to the Financial Times, Krithivasan stated that AI will not upend the global outsourcing market, valued at $300 billion, because enterprises will still need large technology vendors to manage complex systems.  

He noted that some positions may become redundant as automation deepens, but overall demand for technology services remains solid. 

TCS Workforce Adjustments 

During the October‑December quarter, TCS reduced headcount by 11,151 employees, bringing the total workforce to 582,163, down from 593,314 in the September quarter.  

The cuts represent roughly 2% of the global staff and are part of a broader restructuring and efficiency drive. 

Read More: TCS and Kalmar Enter Strategic AI Partnership to Modernise Enterprise IT! 

AI Services Revenue 

AI‑driven services now generate $1.8 billion in annualised revenue for TCS. In the quarter ended December 2025, the company reported a 14% year‑on‑year decline in net profit, posting ₹10,657 crore. 

Data Centre Expansion Plans 

TCS is discussing partnerships with multiple hyperscalers and deep‑tech AI firms to establish data centres in India, aiming to meet rising demand for AI infrastructure and compute capacity. 

Krithivasan highlighted the need for additional capacity and the opportunity for several players in the market. 

Conclusion 

Krithivasan’s comments indicate that TCS views AI as a tool for reshaping work rather than a trigger for mass layoffs. The company continues to streamline its workforce, grow AI service revenue, and explore data centre investments to support client needs. 

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