Tata Consultancy Services announced on Monday, January 12, that its associates remain central to the company's transformation into an AI-first enterprise. The IT services major reported significant progress in building AI capabilities across its workforce during Q3 FY26.

AI Workforce Development

The company revealed that more than 217,000 associates now possess advanced AI skills as of the quarter. This substantial AI-skilled workforce is directly contributing to client success at scale, demonstrating TCS's commitment to leveraging artificial intelligence capabilities across its operations.

Strategic AI Transformation

TCS's focus on developing AI expertise among its associates reflects the company's strategic positioning as an AI-first enterprise. The extensive training and skill development initiatives have resulted in a significant portion of the workforce being equipped with advanced AI capabilities.

The company's emphasis on associate development in AI technologies positions it to better serve clients' evolving digital transformation needs. This workforce capability enhancement represents a key component of TCS's broader strategy to maintain its competitive edge in the rapidly evolving technology services landscape.

Tata Consultancy Services announced its Q3 FY26 results, revealing a marginal increase in attrition rate alongside a significant reduction in workforce as part of its ongoing restructuring initiative. India's largest IT services company reported mixed employment metrics during the December quarter.

Quarterly Employment Metrics

The company's key employment indicators for Q3 FY26 showed notable changes compared to the previous quarter:

Workforce Restructuring Impact

Since the first quarter of FY26, TCS has reduced its employee headcount by 30,906 following the restructuring announcement made in July 2025. The company had disclosed plans to slash its workforce by 2% in FY26, primarily targeting middle and senior management positions.

As part of this transition, approximately 12,200 roles were identified for removal during the workforce restructuring process. TCS emphasized that the transition was being planned with careful consideration to ensure no impact on service delivery to clients.

AI-Focused Transformation Strategy

The workforce changes align with TCS's strategic shift toward becoming an AI-first enterprise. Chief HR Officer Sudeep Kunnumal highlighted the company's progress in building AI capabilities across its workforce:

• Over 217,000 associates now possess advanced AI skills
• Doubled intake of fresh graduates with higher-order skills
• Focus on rapidly expanding next-generation talent pool
• Strategic retraining and redeployment of existing staff

Reporting Approach

In an unusual move during the previous quarter, TCS did not mention its quarterly attrition rate and total headcount figures in its official earnings announcement to stock exchanges. The management later revealed these employment figures during the post-earnings press conference, marking a departure from standard reporting practices.

The company's workforce transformation reflects broader industry trends toward AI integration and operational efficiency, with TCS positioning itself to leverage advanced technologies while managing costs through strategic workforce optimization.