Tech Mahindra Workforce Falls By 863 Employees In Q1 As Company Focuses On Margins

IT services company Tech Mahindra saw its workforce decline by 863 employees during the first quarter ended June 30, 2026, as the company continued its efforts to improve operational efficiency, utilisation levels and profit margins.

The Pune-based IT major’s total employee strength stood at 1,46,760 at the end of the quarter. The reduction comes as the company implements a restructuring strategy under its new management team, aimed at improving business performance and strengthening operating margins.

Tech Mahindra has adopted a more selective approach towards hiring as part of its broader workforce optimisation plan. The company is focusing on improving employee productivity while exploring the use of artificial intelligence tools to enhance efficiency across operations.

The decline in headcount contrasts with mixed workforce trends among major IT peers. Tata Consultancy Services (TCS) reported an increase of 9,279 employees during the same quarter, while HCLTech reduced its workforce by 3,292 employees. Wipro recorded a marginal rise of 888 employees sequentially in the first quarter.

Meanwhile, Tech Mahindra’s employee attrition rate showed improvement during the quarter. The company’s last twelve-month attrition rate declined to 11.8% from 12.1% in the previous quarter, indicating greater workforce stability.

The company is currently undergoing business transformation under its new leadership, with a focus on improving margins, enhancing utilisation and aligning its workforce with changing technology requirements. The shift includes slower hiring, targeted recruitment and greater adoption of AI-led solutions to improve productivity.