Why TCS employee addition just hit 4-year high amid AI job loss fears

TCS added employees at a 4-year high in Q1 FY27, with CEO K. Krithivasan pushing back against fears that generative AI will shrink the IT services workforce, arguing roles will shift toward prompt engineering, model training, and lifecycle management. Revenue per employee rose 6.5% year-on-year, outpacing cost-per-employee growth of 5.9% and revenue growth of 2.7%, while AI services annualized revenue reached $2.6 billion, up 13.6%, supported by large deals including an $800 million contract with SKF. The hiring rebound contrasts sharply with fiscal 2026, when TCS cut its workforce by 3.9% or 23,460 employees through a restructuring drive, while management struck a cautiously constructive tone on demand for Q2 FY27.