TCS hires 14,000 freshers, adds 9,279 employees as CEO rules out AI-driven job cuts

Tata Consultancy Services (TCS) has reinforced its long-term commitment to hiring despite the rapid rise of artificial intelligence (AI), adding 9,279 employees and onboarding 14,000 freshers during the first quarter of FY27. At the same time, CEO and Managing Director K Krithivasan said the company does not expect AI to trigger an overall reduction in its workforce.

Speaking during the company's Q1 FY27 earnings conference on 9 July, Krithivasan said AI will fundamentally change the nature of work but create new opportunities as organisations increasingly require AI-native capabilities.

His remarks come weeks after TCS Chairman N Chandrasekaran indicated the company would become more selective in hiring while slowing overall recruitment, reflecting the growing influence of AI across the technology sector.

AI will change roles, not eliminate the workforce

Krithivasan said TCS does not foresee a significant decline in employee numbers because of AI. Instead, employees will increasingly transition into new technology-focused roles.

"We do not believe that there will be drastic change in headcount. But people would be doing different things like currently if they're doing software engineering and coding, there could be new skill sets required in terms of prompt engineering. People would be training models, testing models and doing life cycle management. So many other new opportunities would come up."

He also rejected the view that AI would significantly reduce white-collar employment.

"We do proactively want to have more top talent available in the organisation. So, whenever we see opportunity and demand to immediately deploy people in the client engagements, we hire. We don't fully agree that AI is going to reduce the overall white collar jobs."

The comments were reported by Moneycontrol during the company's earnings interaction.

Strong hiring reflects continued talent demand

The company's hiring numbers support its position on workforce growth despite increasing AI adoption.

During the April to June quarter, TCS:

• Added 9,279 employees on a net basis.
• Increased its total workforce to 593,798.
• Recorded its largest quarterly headcount addition in four years.
• Onboarded 14,000 fresh graduates from universities across India.

The latest additions suggest the company continues to invest heavily in talent while preparing employees for emerging AI-driven roles.

AI ambitions continue to expand

Krithivasan's comments build on observations made by N Chandrasekaran last month about the company's AI roadmap.

The chairman had said AI agents operating within TCS could eventually match the company's employee count, while AI is expected to contribute to almost 100 per cent of the company's revenue between 2028 and 2030.

Krithivasan's remarks provide additional clarity on how the company intends to balance automation with workforce growth, emphasising reskilling rather than large-scale reductions.

Revenue beats estimates despite profit decline

Alongside its workforce update, TCS reported mixed financial results for the first quarter of FY27. Key highlights included:

• Revenue: Rs 72,275 crore, ahead of the CNBC-TV18 estimate of Rs 71,847 crore.
• Consolidated net profit: Rs 13,349 crore, down 2.7 per cent quarter on quarter, including a one-time legal settlement of Rs 668 crore.
• The reported profit came in below the CNBC-TV18 estimate of Rs 13,461 crore.
• Excluding exceptional items, net profit rose 8.5 per cent year on year to Rs 13,849 crore.
• Revenue increased 13.9 per cent year on year and 2.2 per cent sequentially in rupee terms.

The company also said momentum in its AI business continued during the quarter, although it noted elsewhere in its earnings commentary that AI-related revenues remain uneven because many projects currently span only one to two quarters.

Hiring strategy shifts towards AI-native capabilities

The latest hiring figures indicate TCS is not slowing investment in talent, even as AI becomes central to its business strategy.

Instead, the company appears to be reshaping its workforce around emerging capabilities such as prompt engineering, model training, testing and AI lifecycle management while continuing to recruit graduates and experienced professionals to meet client demand.

As enterprises accelerate AI adoption, TCS is signalling that the future workforce will be defined less by fewer employees and more by different skills, with reskilling and AI-native expertise becoming increasingly important.