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N Chandrasekaran

TCS Expects AI Agents to Match Human Workforce Within Three Years, Says N Chandrasekaran

/ Human Resource Community

Tata Consultancy Services (TCS) is poised to witness a major shift in its workforce structure, with Tata Sons Chairman N. Chandrasekaran predicting that the company will have as many AI agents as human employees within the next three years. Addressing shareholders at TCS’ 31st Annual General Meeting, Chandrasekaran said the company is rapidly expanding the deployment of AI agents across internal operations, customer solutions, and business processes as part of its long-term artificial intelligence strategy. He emphasized that AI is becoming a critical growth engine for the company and is transforming the way enterprises operate. According to Chandrasekaran, TCS has recorded strong momentum in its AI business, with AI-related revenues growing at a compound quarterly rate of over 22 percent during the past four quarters. The company’s annualised AI revenue reached USD 2.5 billion in the final quarter of FY26, reflecting increasing demand for AI-driven solutions. Rejecting concerns that artificial intelligence could threaten the IT services industry, he described AI as one of the most significant opportunities for enterprise technology. He highlighted five major growth areas emerging from AI adoption: modernization of legacy systems, AI-powered redesign of business processes, governance and management of AI agents, sovereign AI initiatives, and the rise of physical AI applications in industrial environments. Chandrasekaran noted that TCS has already launched sovereign AI projects in India and Europe, while also deploying AI-powered robotics solutions for global clients. He added that growing enterprise investments in AI are expected to drive technology spending worldwide over the next two years. Despite rapid technological change, TCS continues to maintain strong business performance. The company reported consolidated revenue of Rs 2.67 lakh crore in FY26, marking a 4.6 percent year-on-year increase, while net profit rose 8.8 percent to Rs 52,820 crore. TCS also secured contracts worth more than USD 40.7 billion during the fiscal year. He concluded that in the evolving AI landscape, trust, context, and deep client relationships will remain the most valuable differentiators for technology companies. Source: ANI

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Tata Sons Chairman Urges Air India Staff to Tighten Costs and Elevate Service Standards

/ Human Resource Community

In a candid address to employees, Natarajan Chandrasekaran, Chairman of Tata Sons, called on the workforce of Air India to prioritise cost efficiency, enhance service quality, and remain grounded amid ongoing industry challenges. Speaking at a town hall held at the airline’s headquarters in Gurugram, Chandrasekaran acknowledged that while Air India has built a strong foundation for future growth, the aviation sector is currently navigating a difficult phase. He emphasised that despite a promising outlook, the present situation demands disciplined execution and a sharp focus on controllable factors. Reaffirming the group’s unwavering support, he stated that the Air India Board remains fully committed to the airline and will continue to collaborate closely with its leadership team. He urged employees to concentrate on improving operational efficiency, managing costs with precision, and maintaining a realistic perspective on the challenges ahead. The address comes shortly after the resignation of Campbell Wilson, who stepped down on April 7, well before completing his five-year term that was scheduled to run until July next year. His exit has added to the transitional phase the airline is currently undergoing. Despite these developments, Chandrasekaran praised Air India employees for their resilience, noting that they have demonstrated remarkable tenacity in navigating a “perfect storm” of challenges. He encouraged the team to continue with the same determination as the airline works towards stabilisation and long-term growth. Source: PTI

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TCS to Lay Off Over 12,000 Employees Amid AI Disruption and Economic Pressures

/ Human Resource Community
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In a landmark decision, Tata Consultancy Services (TCS), India’s largest IT services provider and the crown jewel of the Tata Group, is set to let go of 12,261 employees — nearly 2% of its global workforce — making it the biggest layoff in the company’s history. The move comes as TCS navigates a rapidly evolving technology landscape marked by AI-driven disruption, weakening demand, and global economic headwinds. The company, which had a workforce of over 610,000 as of June, is restructuring to align with new business realities. Historically, workforce reduction at TCS has been modest — for instance, in FY15, the firm cut about 3,000 jobs, roughly 1% of its employee base. This latest wave of layoffs will largely impact mid- to senior-level professionals, particularly those who cannot be transitioned into new roles within the organization. The restructuring signals a major pivot for TCS, as it intensifies its focus on automation and AI to remain competitive in an increasingly margin-sensitive market. “This transformation is about preparing TCS for the future,” CEO K Krithivasan noted in an internal communication. “While such changes are essential for our continued growth, we recognize the challenges it brings to our colleagues. We deeply appreciate their contributions and will support them through this transition.” Analysts say the decision reflects a broader industry trend. Phil Fersht, CEO of HfS Research, highlighted that AI is significantly disrupting the traditional, manpower-heavy IT services model. Clients are also pushing for steep cost reductions — sometimes as much as 20-30% — compelling firms like TCS to reevaluate their cost structures. The trend isn’t isolated to TCS. Other Tata Group companies such as Tata Motors and Tata Steel have also undertaken job cuts in recent years to streamline operations and boost profitability. In 2019, Tata Steel cut 3,000 positions in its European business. This move by TCS underscores the shifting priorities within the IT industry, where future-readiness increasingly hinges on agility, automation, and leaner operations. Source: Economic Times

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