Tech Mahindra denies layoff reports; issues statement to NSE

Tech Mahindra has denied reports about large-scale layoffs in the company. The clarification came amid rumours to the same effect circulating on social media. Tech Mahindra has now confirmed that the company is not planning any major workforce reduction.

In a recent filing to the stock exchanges, the IT services company said claims of significant job cuts are incorrect and are not under consideration. The clarification comes after several posts on the social media platform X (formerly Twitter) suggested that the company could significantly reduce its workforce. One widely circulated post claimed that as many as 30,000 employees could be laid off, linking the alleged move to the increasing adoption of artificial intelligence (AI) across the technology sector.

What Tech Mahindra said about layoff rumours

In its filing with NSE, Tech Mahindra wrote: “The Company has received calls and has noted certain social media posts regarding a market rumour of a potential significant reduction in headcount.In view of the above speculation, 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 rumours.The Company has complied with and continues to comply with the relevant disclosure norms under the SEBI Listing Regulations. This intimation is also being uploaded on the website of the Company at www.techmahindra.com. This is for your information and record.”

What social media users said about Tech Mahindra layoffs

Some social media users also speculated that broader AI integration among global technology companies could lead to job reductions at Tech Mahindra. While the company did not address any specific social media posts, it said reports of a planned headcount reduction are false.

According to its latest quarterly disclosures, Tech Mahindra employs nearly 1.5 lakh people globally, and its overall workforce has remained broadly stable in recent quarters.The management had previously indicated that the company is focusing on improving productivity in fixed-price projects rather than reducing its workforce. This includes redeploying employees from completed or lower-utilisation projects to new assignments.The clarification is timely as Tech Mahindra is still expanding its investments in artificial intelligence and digital transformation.In recent times, the company has announced a partnership with Microsoft to launch an ontology-driven Agentic AI platform aimed at accelerating data modernisation in the telecom and enterprise sectors. This is part of Tech Mahindra’s plans to incorporate AI in its enterprise and telecom services.Despite the company’s growing focus on AI adoption, Tech Mahindra reiterated that there is currently no proposal under consideration for mass layoffs.