Generative AI
Infosys CEO confirms no layoffs due to GenAI; discretionary spending remains unchanged
Infosys CEO Salil Parekh has confirmed that the company has no plans for job cuts, such as rightsizing or downsizing, due to the adoption of generative AI (GenAI). Speaking to 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.”
No firing at Infosys
Parekh highlighted that Infosys views technological advancements as opportunities for expansion and growth, rather than as a means to reduce its workforce. Unlike other companies that have reduced headcounts citing AI efficiencies, Infosys is leveraging GenAI to enhance operational efficiency and reduce costs without compromising on employee numbers.
Industry layoffs amid AI integration
Several global technology firms, including Twitter, Meta, Amazon, and Google, have announced layoffs attributed to AI or GenAI integration. These companies have partially attributed workforce reductions to the efficiencies brought by new technologies like AI. In contrast, Infosys is actively investing in training its workforce in GenAI.
Workforce training and expansion
Parekh emphasised Infosys’s commitment to training its employees in generative AI. “Six out of every eight Infosys employees are getting trained in different aspects of generative AI,” he said. This approach ensures that the company is prepared for future technological advancements while maintaining its workforce.
Agile hiring plans
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 comes after Infosys reported a year-on-year decline in its headcount for the financial year 2024, marking the first such decrease since 2001. The company experienced a sequential reduction in its workforce over the last four quarters, reflecting broader industry trends.
On the topic of discretionary spending, Parekh noted that there hasn’t been a significant change from the previous quarter. “The discretionary spends approach looks similar at the end of Q4 and the start of Q1… and the same thing is visible to us today,” he said.
Revenue guidance and future outlook
Despite the challenges, 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.
Also read | Sundar Pichai, Google CEO, discusses the importance of using Gemini and explores AI with consciousness
No firing at Infosys
Parekh highlighted that Infosys views technological advancements as opportunities for expansion and growth, rather than as a means to reduce its workforce. Unlike other companies that have reduced headcounts citing AI efficiencies, Infosys is leveraging GenAI to enhance operational efficiency and reduce costs without compromising on employee numbers.
Industry layoffs amid AI integration
Several global technology firms, including Twitter, Meta, Amazon, and Google, have announced layoffs attributed to AI or GenAI integration. These companies have partially attributed workforce reductions to the efficiencies brought by new technologies like AI. In contrast, Infosys is actively investing in training its workforce in GenAI.
Workforce training and expansion
Parekh emphasised Infosys’s commitment to training its employees in generative AI. “Six out of every eight Infosys employees are getting trained in different aspects of generative AI,” he said. This approach ensures that the company is prepared for future technological advancements while maintaining its workforce.
Agile hiring plans
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 comes after Infosys reported a year-on-year decline in its headcount for the financial year 2024, marking the first such decrease since 2001. The company experienced a sequential reduction in its workforce over the last four quarters, reflecting broader industry trends.
On the topic of discretionary spending, Parekh noted that there hasn’t been a significant change from the previous quarter. “The discretionary spends approach looks similar at the end of Q4 and the start of Q1… and the same thing is visible to us today,” he said.
Revenue guidance and future outlook
Despite the challenges, 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.
Also read | Sundar Pichai, Google CEO, discusses the importance of using Gemini and explores AI with consciousness
