Infosys CEO Confirms No Job Cuts Amid AI Integration

Infosys CEO Salil Parekh has assured that the company has no intentions of implementing job cuts, including rightsizing or downsizing, due to the adoption of generative AI (GenAI). In a recent interview with CNBC-TV18, Parekh stated, “Infosys is not looking at rightsizing, downsizing, or any kind of job cuts as has happened with others in the industry due to GenAI.” This stands in stark contrast to other technology firms that have reduced their workforce, citing efficiencies brought by AI technologies.

Unlike companies such as Twitter, Meta, Amazon, and Google, which have announced significant layoffs attributed to AI integration, Infosys views technological advancements as opportunities for growth. Parekh emphasized that Infosys is leveraging GenAI to enhance operational efficiency and reduce costs without compromising on employee numbers. The company is actively investing in training its workforce in GenAI, with six out of every eight employees receiving training in various aspects of this technology.

Parekh underscored Infosys’s commitment to workforce development, stating, “We at Infosys have a very strong focus on generative AI, and over the next several years, we will have more and more people joining us who become experts in this field.” This approach ensures that the company remains prepared for future technological advancements while maintaining its workforce.

Regarding hiring plans, Parekh mentioned that Infosys maintains an agile hiring model. “We see hiring come back as the economic environment improves and spending on digital transformation picks up. We have not shared an annual target on hiring and will remain agile based on the economic environment,” he said. This statement follows a year-on-year decline in Infosys’s headcount for the financial year 2024, marking the first such decrease since 2001. Despite this, Parekh noted that there hasn’t been a significant change in discretionary spending from the previous quarter.

Infosys remains confident in meeting its constant currency revenue guidance for FY25, which stands at 1-3%. Parekh attributed this confidence to the stability of discretionary spending, large deal acquisitions, and advancements in GenAI. “What gives us comfort is the large deals, the stability of discretionary spend, and our advancements in GenAI, where we have completely transformed the company,” he said.

Infosys’s strategy contrasts sharply with the broader trend in the tech industry, where several global technology firms have announced layoffs due to AI or GenAI integration. Parekh clarified, “No, we are not doing any of that. In fact, others in the industry have done that. We have been very clear that that’s not the approach we are taking. My own view is for large organisations, all technologies will coexist.”

Recently, Infosys issued performance bonuses to its employees, although a report highlighted a reduction in the average payout for the fourth quarter. Employees at band six and below received quarterly performance bonuses for January-March, but the average payout dropped to 60 percent from 73 percent in the previous quarter.

In a related note, Infosys founder Narayana Murthy highlighted India’s progress in adapting global innovations, although he acknowledged that the country still has a long way to go to originate new technologies. “Thanks to all the wonderful work done by the government and our institutes of higher learning, we have reached an orbit where we are in a position to use the inventions and innovations that take place in the developed world for the betterment of the country,” Murthy stated.

Overall, Infosys’s approach to integrating GenAI and maintaining its workforce reflects a strategic focus on growth and development, distinguishing it from the broader industry trend of workforce reductions amid AI advancements

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