No layoffs at Infosys, says CEO amid AI transformation
What's the story
Infosys CEO Salil Parekh has confirmed that the company won't be laying off employees, even as artificial intelligence (AI) transforms the global IT services sector. In an interview with Moneycontrol, Parekh said that Infosys hasn't laid off any employee in the last year and doesn't plan to do so in the future. This statement comes despite automation and AI tools becoming increasingly important in software development and delivery processes.
AI impact
AI's role in the industry
Parekh described the ongoing transition to AI as a structural shift in the industry. He said that while the nature of roles will change, there will still be a demand for talent. "AI is expanding the scope of work, not shrinking it," he said. This perspective differs from other IT firms like TCS, HCLTech, Oracle and Cognizant which have announced or executed workforce restructuring over the past year due to automation-led efficiencies.
Hiring plans
Freshers hiring to continue
Infosys has announced its plan to continue hiring freshers, with Parekh saying the company will onboard some 20,000 fresh graduates this year. This is on par with last year's intake and shows that the company still relies on a robust entry-level talent pool even as AI tools start changing work processes.
Reskilling efforts
Reskilling over layoffs
Parekh said that Infosys is focusing on reskilling its employees instead of cutting jobs. Engineers are being trained to work with both traditional coding methods and AI-driven tools. "In training, we're encouraging the engineers to build code in the way they used to in the past, and then introduce new tools and foundation models," he told Moneycontrol.
AI contribution
AI's impact on Infosys and partnerships
Parekh revealed that AI already contributes around 5.5% to Infosys's revenue and is growing rapidly. The company is also strengthening its partnerships with companies like OpenAI and Anthropic, while launching internal platforms such as Topaz Fabric to enable large-scale AI-led development.