Infosys CEO: No GenAI layoffs, discretionary expenditure unaffected

CEO Salil Parekh told CNBC-TV18 that Infosys has not thought about eliminating jobs in any way as a consequence of using generative AI (GenAI). “In light of GenAI, Infosys is not considering rightsizing, downsizing, or any other form of job cuts, as has occurred with others in the industry,” he said.

Parekh emphasized that, in contrast to other businesses, Infosys sees technology developments as a chance for growth and expansion rather than as a way to cut down on staff.

Recently, a number of multinational internet companies—including Twitter and Meta—announced layoffs that they linked to the integration of GenAI or AI, claiming the efficiency of AI as the rationale for cutting staff. Google and Amazon have also made large cutbacks, which they partly blame on the use of AI and other new technologies.

Parekh went on to detail how Infosys is using GenAI to boost productivity and save expenses without sacrificing the number of employees. “All technologies will coexist in huge organizations. We’ll be working with the biggest organizations in the world and will be adding more and more generative AI specialists over the next several years, he said.

The Bengaluru-based business is also making significant investments in providing its employees with GenAI training. According to Parekh, “six out of every eight Infosys employees are receiving training in various generative AI topics.”

Infosys continues to use an agile recruiting methodology. Hiring resumes as the economy strengthens and investment in digital transformation increases. We won’t set an annual hiring goal and will continue to be flexible in response to the state of the economy, according to Parekh.

This declaration follows the IT services behemoth’s announcement that, for the first time since 2001, its headcount decreased year over year in the fiscal year 2024. The decline was also a part of a larger pattern in which during the previous four quarters, the firm had seen a sequential layoff of employees.

Parekh said that there haven’t been any notable changes from the prior quarter in terms of discretionary expenditure. “The discretionary spending strategy is comparable at the conclusion of Q4 and the beginning of Q1… and we may still see the same thing now,” he said.

Infosys, however, is optimistic that it would reach its 1-3% constant currency sales target for FY25. Large agreements, the consistency of discretionary spending, and our progress in GenAI, which has radically changed the business, are what give us comfort, according to Parekh.