As concerns grow about AI’s impact on India’s IT sector, TCS pushes employees to embrace AI, even if it means reducing revenue.
AI Adoption to Improve Efficiency and Cut Costs
At the Nasscom Technology and Leadership Forum, TCS CEO K Krithivasan openly discussed the company’s strategy. Despite job cuts and fears of automation, he encouraged employees to use AI tools to improve efficiency, even at the cost of lower billing.
He emphasized, “We are telling associates that if you can deliver faster, better, or cheaper with AI, tell your customers, even if it impacts revenue.”
AI-Fueled Efficiency Stirs Concerns Amid Job Cuts
Krithivasan’s message comes amid worries about how AI could disrupt India’s IT industry. Falling stock prices in Indian IT companies have highlighted concerns about reduced manpower and long-term job security.
In February 2026, Indian IT companies lost $68.6 billion in market value due to these fears. The Nifty IT index has dropped 21%, marking its worst performance in 23 years.
TCS Experiences Workforce Reductions Amid AI Push
Reports revealed that TCS reduced its workforce by nearly 20,000 employees during the June to September 2025 quarter. This occurred alongside efforts to shift towards AI-driven delivery systems.
Despite these cuts, TCS has clarified that voluntary attrition was the primary factor in the reduction. The company also showed a decrease in voluntary attrition, down to 13.3% from 13.8%.
TCS Reassures Employees About AI’s Long-Term Impact
Krithivasan reassured employees that AI’s impact on jobs should not be viewed as a threat. He believes AI will create new opportunities for those who adapt and embrace change.
“We are not afraid of AI taking away jobs. Instead, we believe it will open up more opportunities for growth,” he said.
