Infosys CEO Salil Parekh says GenAI adoption won't lead to job losses

Infosys sees technological advancements as avenues for expansion and growth, rather than as tools for reducing its workforce, said Parekh

Generative AI (GenAI) will not result in job losses at Infosys. The company has no plans for job cuts, such as rightsizing or downsizing due to the adoption of GenAI, Infosys CEO Salil Parekh has said in an interview.  

“Infosys is not looking at rightsizing, downsizing, or any kind of job cuts as has happened with others in the industry due to GenAI,” he said, while speaking to CNBC-TV18. Parekh said, unlike some peers in the industry, Infosys sees technological advancements as avenues for expansion and growth, rather than as tools for reducing its workforce.

While various global technology firms like Twitter and Meta have recently announced layoffs citing AI efficiencies as reasons for downsizing, Parekh said that Infosys is leveraging GenAI to enhance operational efficiency and reduce costs without diminishing its employee count. 

 

He emphasised the coexistence of different technologies in large organisations and highlighted Infosys’s commitment to training its workforce in GenAI. Presently, six out of every eight Infosys employees are receiving training in various aspects of generative AI.

Speaking about the tech giant’s hiring strategy, Parekh said that the company maintains an agile approach, adapting to economic conditions and the pace of digital transformation spending.  “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.

Despite a year-on-year decline in headcount for the first time since 2001, Parekh expressed confidence in meeting Infosys's constant currency revenue guidance for FY25, citing factors such as large deals, stable discretionary spending, and advancements in GenAI that have transformed the company. 

Infosys’ headcount for Financial Year 2024 was down by 25,994 employees, making it the first-ever decline in headcount for the Bengaluru-based IT services major since at least 2001.

The total headcount for FY24 stood at 317,240, down 7.6 per cent from 343,234 employees in the previous year. On a quarterly basis too, Infosys added 5,423 fewer employees, a drop for the fifth consecutive quarter.

Meanwhile, Parekh noted that there haven’t been significant changes in discretionary spending from the previous quarter.