Tech Mahindra Refutes Social Media Claims of Large-Scale Layoffs

New Delhi — Tech Mahindra on Monday dismissed rumours circulating on social media about a potential mass layoff, clarifying that no proposal for a significant reduction in workforce is currently being considered.

In a filing with stock exchanges, the IT services firm said it had received queries regarding posts circulating online that suggested the company was planning major job cuts.

The company stated that it considered it necessary to clarify the matter and categorically denied the speculation, adding that no such plan is under consideration.

Reports circulating on platforms such as X (Twitter) had claimed that as many as 30,000 employees could be affected. However, the company rejected these claims as unfounded.

Tech Mahindra currently employs around 1.5 lakh people globally.

Recently, the company announced a collaboration with Microsoft to develop an ontology-driven Agentic AI platform aimed at accelerating data modernisation for telecom and enterprise customers.

Earlier, the company had also indicated that while it is focusing on improving productivity and redeploying employees from fixed-price projects to new assignments, large-scale layoffs are not being considered.

Meanwhile, a report by Morgan Stanley suggested that the long-term impact of artificial intelligence on employment may not be as severe as widely feared. The report said that although some roles will likely be automated, many workers are expected to transition into new kinds of jobs, including roles that may emerge with the growth of AI technologies.

The report emphasised that artificial intelligence is more likely to transform the nature of work rather than eliminate jobs entirely.

In the broader technology sector, several companies are restructuring their workforce amid growing investments in AI. For instance, Oracle has reportedly planned job reductions to expand its AI-focused data centre capacity, while Amazon recently announced layoffs affecting about 16,000 employees as part of an AI-led restructuring initiative.

With inputs from IANS