Indian IT major Tech Mahindra on Monday pushed back against rumours circulating on social media that the company is preparing for a large round of job cuts. The company said there is no such proposal under consideration. The clarification came after several posts online suggested that the firm could be planning major layoffs.
Tech Mahindra denies rumours of mass layoffs
In a filing to the stock exchanges, Tech Mahindra said it had taken note of the rumours spreading online and decided to address the matter publicly. “The company has received calls and has noted certain social media posts regarding a market rumour of a potential significant reduction in headcount,” the company said.
It then firmly denied the claims. “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 filing added, stating that the statement was made in line with disclosure rules.
Posts on X claimed 30,000 employees could be affected
The rumours gained traction after several posts appeared on platforms such as X. Some of these posts claimed that as many as 30,000 employees at Tech Mahindra could face job cuts. However, the company has made it clear that the claims are not true. Tech Mahindra currently employs about 1,50,000 people worldwide.
Recently, Tech Mahindra announced a collaboration with Microsoft to launch an ontology-driven Agentic AI platform. The platform is aimed at speeding up telecom and enterprise data modernisation.
The company had also clarified in the previous quarter that mass layoffs are not being considered. Instead, it is working on improving productivity. As part of that effort, employees may sometimes be moved out of fixed-price projects and reassigned to new projects within the company, Tech Mahindra clarified at the time.
AI may change jobs, not eliminate them
A recent report by Morgan Stanley suggested that the long-term impact of artificial intelligence on jobs may not be as severe as many fear. According to the report, while some roles will be automated, most workers are unlikely to be permanently left behind. Many may instead move into new kinds of jobs, including roles that do not yet exist. The report said AI is more likely to change the nature of work rather than eliminate it completely.
At the same time, several leaders in the tech industry have said that many white-collar roles that depend on computers could be automated in the next 12 to 18 months. Some companies have already announced job cuts as they invest more in AI infrastructure.