Business News at 10:00 am on 24th May, 2024

Let’s begin. Infosys has not considered any form of job cuts, such as rightsizing or downsizing, as a result of adopting generative AI, CEO Salil Parekh told CNBC-TV18. Quote Infosys is not looking at rightsizing, downsizing, or any kind of job cuts as has happened with others in the industry due to GenAI unquote. Several global technology firms, including Twitter and Meta, have recently announced layoffs attributed to AI or GenAI integration, citing AI efficiencies as a reason for reducing their workforce. Amazon and Google have also made significant cuts, partially attributing these to the adoption of new technologies like AI. Parekh further explained how Infosys is utilising GenAI to enhance operational efficiency and reduce costs without compromising on employee numbers.
Over to Industry. The malls in India are rebooting the shopping experience to woo the modern-day customer by deploying latest technologies. The bottom line is clear: Malls and the stores within have to meet customers where they are, instead of endlessly waiting for them to come to them. In a bid to stay relevant, malls are tapping into every click, every swipe and every purchase which is leaving behind a digital footprint – a treasure trove of data waiting to unlock the secrets of consumer behaviour. The country’s largest developer DLF, for instance, is reworking its loyalty app where mall shoppers get vouchers for the purchases they have made. As part of the rejig, it is also working on guiding shoppers to the next store
Latest update on the Draft Digital Bill. Trade body US-India Strategic Partnership Forum has sought intervention of finance minister Nirmala Sitharaman on the Draft Digital Competition Bill. In a letter on May 15, the last date to submit the response to the draft Bill, trade body’s president and CEO Mukesh Aghi has sought a lengthier consultation period post the elections. Quote This lengthier period will enable the industry to submit their in-depth comments. We request that the ministry of corporate affairs re-evaluate the scope and validity of the Committee on Digital Competition Law report and Bill unquote he said. In its current form, the Bill impacts companies that operate in highly competitive sectors and do not hold major gatekeeping power unqoute he said.
Over to Market. The government is unlikely to cancel auctions of central government securities scheduled for the first half of the current fiscal year, despite receiving a record dividend from the Reserve Bank of India . Officials from the Ministry of Finance have told bond market participants that they do not intend to alter their borrowing plan for the initial six months. Following the RBI’s announcement on Wednesday of a higher-than-expected dividend of Rs 2.11 trillion for the government, a clarification has emerged. The bumper dividend sparked speculation among bond traders that an excess cash infusion might lead the government to cancel securities auctions. Quote The ministry officials have made it clear that the government will borrow whatever has come out in the calendar unquote.
Here’s big update on Paytm layoffs. Paytm parent One97 Communications, which is looking to reduce employee costs, may have to cut around 15-20% of its workforce this fiscal. In FY23, the company had an average of 32,798 on-roll employees. Of these, 29,503 were active on-roll. Its average cost per employee was Rs 7.87 lakh. In FY24, the total cost has gone up by 34% year-on-year to Rs 3,124 crore, and the average employee cost is estimated to have risen to Rs 10.6 lakh. With the company embarking on an employee cost saving plan of Rs 400-500 crore due to burgeoning losses, the number of employees that could be reduced is likely to be 5,000-6,300. The process of reducing headcount is already on.
Moving to news from Telecom Industry. The department of telecommunications has asked telecom operators to reverify nearly 680,000 mobile connections suspected to have been obtained using invalid, non-existent, fake or forged proof of identity and proof of address documents. The telecom department has given a 60-day time to telecom operators to reverify the suspected mobile numbers. The action by DoT assumes significance amid the menace of increase in financial frauds over phones. The department has been using AI-driven analysis to identify such suspected numbers. The collaboration between various sectors and the utilisation of AI technology have been pivotal in identifying these fraudulent connections, demonstrating the effectiveness of integrated digital platforms in combating identity fraud, DoT said. It has disconnected over 17 million fraudulent mobile connections.
Lastly, let’s look at the stocks in focus today. This include LTTS, Infosys, HCLTech, Paytm, Jio Financial Service. L&T Technology Services announced the inauguration of its simulation centre of excellence for Airbus in Bengaluru. On the other hand, Infosys has not considered any form of job cuts, such as rightsizing or downsizing, as a result of adopting generative AI, CEO Salil Parekh said.