TCS CEO Explains Why AI Efficiency Actually Leads to New Jobs

Tata Consultancy Services (TCS) CEO K. Krithivasan has strongly dismissed the notion that artificial intelligence (AI) will trigger mass layoffs within the global IT services industry.

In a series of recent statements and interviews, most notably with the Financial Times in late January 2026, Krithivasan sought to calm widespread anxiety regarding AI-driven job displacement.

TCS Redefining Roles, Not Removing Humans

The TCS chief executive emphasized that while generative AI (GenAI) is a “foundational shift” in how knowledge is applied, it is far more likely to change the nature of work than to dismantle the $300 billion outsourcing model.

Krithivasan noted that even as automation accelerates, global enterprises will continue to rely on large technology vendors to manage increasingly complex systems.

“AI is not going to create layoffs by itself,” Krithivasan stated.

He acknowledged that while specific roles might become redundant as automation deepens, the primary result of AI adoption is productivity gains.

These efficiencies, he argues, will free up capital for clients to reinvest in new, more complex digital projects, thereby sustaining overall demand for tech talent.

The Workforce Reality Check

Despite the CEO’s reassuring outlook, TCS has recently undergone a significant workforce rationalization.

The company reduced its headcount by approximately 11,000 employees during the October–December 2025 quarter, bringing its total workforce to 582,163.

Management clarifies that these reductions—representing about 2% of the global staff—are part of a broader efficiency drive and “skill mismatch” correction rather than a direct result of AI replacement.

TCS is actively pivoting its workforce toward “higher-order” AI roles, with over 217,000 employees already trained in advanced AI skills.

Future Outlook: The “AI-First” Strategy

TCS remains committed to becoming the world’s largest AI-led technology services company.

The firm’s AI-driven services already generate $1.8 billion in annualized revenue.

Krithivasan believes the long-term impact of AI will be a net positive for job creation, as the industry moves from experimentation to full-scale, AI-integrated production.

To support this, TCS is also expanding into AI infrastructure, discussing partnerships with hyperscalers to establish new data centers in India.

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