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May 24, 2024

Infosys CEO Salil Parekh Affirms GenAI Adoption Will Not Lead to Job Losses

Infosys CEO Salil Parekh has assured that the adoption of Generative AI (GenAI) will not result in job losses at the company. In an interview with CNBC-TV18, Parekh made it clear that Infosys has no plans for job cuts such as rightsizing or downsizing due to GenAI. “Infosys is not looking at rightsizing, downsizing, or any kind of job cuts as has happened with others in the industry due to GenAI,” Parekh stated.

Unlike some of its industry peers, Infosys views technological advancements as opportunities for expansion and growth, rather than tools for workforce reduction. This stands in contrast to the recent trend among global technology firms like Twitter and Meta, which have announced layoffs citing AI efficiencies as a reason for downsizing. Parekh emphasized that Infosys is leveraging GenAI to enhance operational efficiency and reduce costs without diminishing its employee count.

The coexistence of different technologies in large organizations is a key part of Infosys’s strategy, and the company is committed to training its workforce in GenAI. Currently, six out of every eight Infosys employees are undergoing training in various aspects of generative AI, underscoring the company’s dedication to equipping its employees with the necessary skills to thrive in an evolving technological landscape.

Discussing Infosys’s hiring strategy, Parekh highlighted the company’s agile approach, which allows it to adapt 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 explained. This flexible approach ensures that Infosys can respond swiftly to changes in market conditions and client needs.

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. He attributed this optimism to factors such as large deals, stable discretionary spending, and advancements in GenAI that have transformed the company. For Financial Year 2024, Infosys’ headcount stood at 317,240, down 7.6 percent from the previous year’s 343,234 employees. The company experienced a reduction of 25,994 employees, marking its first-ever decline in headcount since at least 2001. On a quarterly basis, Infosys added 5,423 fewer employees, a decline for the fifth consecutive quarter.

Parekh’s statements highlight a broader narrative of technological integration and workforce development. Infosys’s stance on GenAI adoption reflects a forward-thinking approach, prioritizing employee upskilling and technological coexistence over workforce reduction. This strategy not only positions Infosys as a leader in technological innovation but also reinforces its commitment to its employees’ growth and development.

In conclusion, Infosys’s approach to GenAI adoption is a testament to its belief in technology as a catalyst for growth and efficiency rather than a cause for job losses. By investing in employee training and maintaining an agile hiring strategy, Infosys is well-positioned to navigate the evolving technological landscape and continue its trajectory of growth and innovation. Salil Parekh’s reassurances provide a clear message: at Infosys, technological advancement and workforce development go hand in hand.

Jhumpa Lahiri

Jhumpa Lahiri

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