IT major Tech Mahindra has refuted rumors circulating on social media about a significant downsizing of its workforce. The company clarified that there is no such proposal being considered and dismissed these speculations. Tech Mahindra emphasized that it has no plans for a large-scale job cut, contrary to the market rumors.
Amidst claims on platforms like X suggesting layoffs impacting up to 30,000 employees, Tech Mahindra, with a global workforce of approximately 150,000 individuals, recently partnered with Microsoft to introduce an ontology-driven Agentic AI platform. This collaboration aims to expedite the modernization of telecom and enterprise data.
While Tech Mahindra had previously announced that it is not contemplating mass layoffs, it is concentrating on enhancing productivity through initiatives such as transitioning employees from fixed-price projects to new assignments. Additionally, a recent report by Morgan Stanley indicated that the long-term effects of AI on employment might not be as drastic as anticipated.
The report highlighted that although certain job roles may become automated, the majority of workers are expected to transition into new job categories, including those that are currently non-existent. It suggested that artificial intelligence will transform the nature of work rather than completely eradicate it. Notably, various leaders in the tech industry have forecasted that many white-collar positions reliant on computers could be automated within the next 12 to 18 months.
Tech giant Oracle is reportedly planning to reduce its workforce by 20,000 to 30,000 employees to expand its AI data center capacity. Similarly, Amazon recently disclosed its intention to lay off 16,000 employees as part of its AI restructuring strategy.
