Tata Chairman Denies AI Link to TCS Layoffs, Cites Performance Focus

Tata Sons Chairman N Chandrasekaran has refuted claims that artificial intelligence (AI) drove recent layoffs at Tata Consultancy Services (TCS), attributing the workforce reduction to performance-based evaluations. 

Layoffs Unrelated to AI Adoption 

In a February 18, 2026, interview with NDTV Profit at the AI India Impact Summit, Chandrasekaran stated: "TCS layoffs have nothing to do with it (AI)... It's got nothing to do with AI." TCS terminated approximately 30,000 employees over six months, sparking speculation about AI-driven job displacement. 

Chandrasekaran emphasized that TCS's actions aligned with standard performance management practices rather than technological substitution. 

AI as a Human Empowerment Tool 

The chairman endorsed Prime Minister Narendra Modi's vision of "human-centric AI," asserting that AI augments human capabilities.  

He cited ASHA workers (community health volunteers) whose roles evolved from data collection to caregiving through AI tools, demonstrating technology's potential to elevate job functions. 

Chandrasekaran elaborated: "AI helps people reduce and subtract the effort required... to perform at higher levels," positioning it as a productivity enhancer rather than a job displacer. 

Summit Focus on Learning Over Deals 

Addressing the AI India Impact Summit, Chandrasekaran characterized the event as a knowledge-sharing platform: "It's an opportunity to meet leaders... understand what they're doing and how the future is evolving."  

He underscored the summit's role in fostering collaboration and insight exchange over transactional business activities. 

Read More: TCS Share Price in Focus as Tata Group and OpenAI Announce Strategic AI Partnership! 

Conclusion 

Tata Sons Chairman N Chandrasekaran has unequivocally dismissed AI as a factor in TCS's recent layoffs, attributing the workforce reduction to performance management. He advocated for AI's potential to empower humans, citing real-world examples, and reinforced the technology's role in enhancing productivity. Chandrasekaran's remarks highlight a strategic focus on human-AI synergy rather than technological substitution in Tata Group's operations. 

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