Tech Mahindra denies social media rumors of 30,000 layoffs
What's the story
Tech Mahindra has refuted widespread social media rumors of a massive layoff, saying the company isn't planning any major job cuts. The IT services company issued a clarification in an exchange filing on Monday, calling the claims about potential job cuts "incorrect." The statement comes amid speculation that the company's increasing adoption of artificial intelligence (AI) could lead to workforce reductions.
Workforce assurance
Major headcount reduction speculated
In its filing, Tech Mahindra said, "The company, on its own accord, considers it necessary to clarify to the Stock Exchanges that no such proposal is under consideration and categorically denies any such market rumors." The statement comes after several posts on X hinted at a possible major headcount reduction by the company. One post even claimed that as many as 30,000 employees could be laid off due to AI adoption across the tech sector.
AI impact
Workforce size remained stable in recent quarters
While Tech Mahindra didn't respond to specific posts, it reiterated that reports of a planned headcount reduction are false. The company's latest quarterly disclosures show it employs nearly 1.5 lakh people globally and its overall workforce size has remained broadly stable in recent quarters. Despite the growing focus on AI adoption, the company said no proposal for mass layoffs is currently under consideration.
Business strategy
Investments in AI and digital transformation
The clarification comes as Tech Mahindra ramps up its investments in AI and digital transformation. The company recently announced a partnership with Microsoft to launch an ontology-driven Agentic AI platform, aimed at accelerating telecom and enterprise data modernization. This initiative is part of Tech Mahindra's broader strategy to integrate AI capabilities into enterprise services and telecom solutions while maintaining workforce stability.