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

In a recent statement, K Krithivasan, the CEO and Managing Director of Tata Consultancy Services (TCS), addressed growing concerns regarding the potential impact of artificial intelligence (AI) on employment within the company. Despite the ongoing acceleration of TCS's AI-led transformation strategy following its Q1 FY27 results, Krithivasan firmly asserted that the introduction of AI will not lead to a decrease in the overall workforce. Speaking after the company’s quarterly earnings announcement, he emphasized that TCS is committed to expanding its team by hiring individuals with AI-centric skills and reskilling current employees to adapt to evolving client needs. His assertions come at a time when apprehensions about AI displacing white-collar jobs are prevalent in the global tech sector. Backing up his claims with data, TCS reported a net addition of 9,279 employees in the June quarter, raising its total workforce to 593,798—marking the highest quarterly increase in four years. This significant hiring surge underscores the company's commitment to growth, even amidst rapid technological advancements. Krithivasan noted that while AI is anticipated to enhance productivity across various functions such as software development and consulting, these gains would primarily facilitate the execution of additional projects rather than lead to job cuts. He suggested that as companies increasingly invest in AI-driven digital transformations, new opportunities are emerging for tech professionals with specialized skills. In its FY27 debut, TCS reported a consolidated net profit of ₹13,349 crore for the April-June quarter, reflecting a 4.6% year-on-year increase, with revenue climbing by 13.9% to ₹72,275 crore, largely driven by robust demand in banking and financial services along with favorable currency fluctuations. Moreover, the company highlighted the rapid expansion of its AI business, with an annualized revenue run rate of $2.6 billion fueled by several AI transformation contracts. However, Krithivasan cautioned that AI revenues might fluctuate since many projects currently span only a few quarters, necessitating ongoing efforts to secure new engagements. As the integration of generative AI continues across global businesses, Krithivasan remains optimistic that this technology will reshape job roles rather than eliminate them. He asserted that the future of the IT sector hinges on ongoing learning, upskilling, and adapting to new AI-driven opportunities, rather than workforce reductions.