Concerns about the impact of artificial intelligence on employment have surged within the technology sector, but Tech Mahindra has strongly denied rumors of a potential reduction affecting up to 30,000 employees. The company’s leadership, including CEO Mohit Joshi, stated that “no such proposal is under consideration,” dispelling speculation surrounding layoffs.
Despite a reported slight decline of 2-3% in the company’s overall headcount for the second quarter of FY26, Joshi described this reduction as “not a plunge,” indicating a strategic approach to workforce management. While industry analyses predict that generative and agentic AI could lead to efficiency gains of 15-35%, the focus is shifting towards reskilling rather than significant job losses.
Tech Mahindra is aiming to harness advancements in AI to enhance productivity and future growth, positioning itself as a leader in generative AI consulting. The IT services sector remains competitive, with companies like Tata Consultancy Services, Infosys, and global firms such as Accenture and IBM also navigating similar challenges amid stock price declines linked to AI concerns.