Tech Mahindra says it is not considering large-scale layoffs, dismisses market rumours

Tech Mahindra on Monday said it is not considering any proposal to significantly reduce its workforce, dismissing speculation circulating on social media about potential layoffs at the IT services company.

In a clarification filed with stock exchanges, the company said it had received calls and noted online posts referring to a rumoured large-scale reduction in headcount. The company said the speculation prompted it to issue a formal clarification.

“The Company has received calls and has noted certain social media posts regarding a market rumour of a potential significant reduction in headcount,” Tech Mahindra said in a statement to the exchanges.

The company said no such proposal is currently under consideration, and categorically denied the rumours suggesting that layoffs were being planned.

“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 statement said.

Tech Mahindra also reiterated that it continues to comply with disclosure requirements applicable to listed companies under the Securities and Exchange Board of India’s Listing Regulations. The company said it has adhered to and continues to follow the required disclosure norms governing publicly traded firms.

The clarification comes after speculation spread online about possible job cuts at the company, prompting queries from market participants and other stakeholders. According to Storyboard18, the company moved quickly to address the rumour in order to prevent market uncertainty and speculation about its workforce strategy.

The denial arrives at a time when workforce restructuring and cost optimisation have become recurring themes across the global technology services sector, as companies respond to shifting demand, automation, and slower discretionary technology spending.

Even as it addressed the speculation, Tech Mahindra has continued to signal its focus on technology transformation and enterprise modernisation. Last week, the company announced a collaboration with Microsoft to launch an ontology-driven Agentic AI platform aimed at accelerating telecom and enterprise data modernisation.

Built on Microsoft Fabric and Azure AI Foundry, the platform is designed to support explainable, auditable and real-time AI-driven decision-making, while enabling organisations to deploy AI agents within secure and governed environments.

The companies said the solution will help telecom operators and enterprises manage increasingly complex data ecosystems, particularly as organisations expand through mergers and acquisitions and struggle to convert enterprise metadata into actionable insights.

For Tech Mahindra, the clarification on layoffs underscores the company’s effort to stabilise market perception while continuing to position itself around emerging technologies such as AI-driven data platforms.