TCS CEO dismisses AI job cut fears, says workforce will continue to grow

Artificial intelligence (AI) will not lead to an overall reduction in jobs at Tata Consultancy Services (TCS), CEO and Managing Director K Krithivasan said, even as the company accelerates its AI-led transformation strategy following its Q1 FY27 results. His remarks come at a time when concerns over AI replacing white-collar jobs continue to grow across the global technology industry.

Speaking after the company's earnings announcement, Krithivasan said TCS does not expect AI to reduce its overall workforce. Instead, he stressed that the company will continue hiring talent with AI-native skills while reskilling existing employees to meet changing client demands.

READ THIS: TCS Q1 FY27 results: Rs 12 per share interim dividend announced; check record date

Backing his statement with numbers, TCS added a net 9,279 employees during the June quarter, taking its total workforce to 593,798. This marks the company's biggest quarterly headcount addition in four years, indicating that hiring remains a priority despite rapid advances in AI.

Krithivasan said AI is expected to improve productivity across software development, consulting and business operations, but those efficiency gains will be redirected toward executing more projects rather than eliminating jobs. According to him, enterprises are increasingly investing in AI-led digital transformation, creating fresh opportunities for technology professionals with specialised skills.

The comments come as TCS reported a strong start to FY27. The company posted a consolidated net profit of ₹13,349 crore for the April-June quarter, up 4.6% year-on-year, while revenue rose 13.9% to ₹72,275 crore, driven by strong demand in banking and financial services as well as favourable currency movements.

TCS also highlighted the rapid growth of its AI business. Krithivasan said the company's AI portfolio has reached an annualised revenue run rate of $2.6 billion, supported by multiple AI transformation deals. However, he noted that AI revenues may remain uneven because most projects currently last only one or two quarters, requiring the company to continuously secure new engagements.

ALSO READ: TCS share price targets by 18 analysts: Buy, hold or sell after Q1 results?

As businesses worldwide continue integrating generative AI into their operations, Krithivasan maintained that the technology will transform the nature of work instead of replacing people. He said the future of the IT industry will depend on continuous learning, upskilling and adapting to emerging AI-driven roles, rather than reducing employee numbers.