Infosys has not considered any form of job cuts, such as rightsizing or downsizing, as a result of adopting generative AI (GenAI), CEO Salil Parekh told CNBC-TV18. “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.

Parekh emphasised that unlike other companies, Infosys views technological advancements as an opportunity for expansion and growth, not as a means to reduce workforce.

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. “For large organisations, all technologies will coexist. Over the next several years, we’ll have more and more people joining us who become experts in generative AI, and we will be serving the world’s large organisations,” he said.

The Bengaluru-headquartered company is also actively investing in training its workforce in GenAI. “Six out of every eight Infosys employees are getting trained in different aspects of generative AI,” Parekh said.

Regarding hiring plans, Infosys maintains an agile model. “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,” Parekh said. 

This statement comes after the IT services giant reported a year-on-year fall in its headcount in the financial year 2024 for the first time since 2001. The fall was also a part of a broader trend wherein the company had suffered a sequential reduction in its workforce over the last four quarters.

Further, on discretionary spending, Parekh said that there hasn’t been a significant changes from the previous quarter. “The discretionary spends approach looks similar at the end of Q4 and the start of Q1… and the same thing is visible to us today,” he said. 

However, Infosys is confident of meeting its constant currency revenue guidance for FY25, which stands at 1-3%. “What gives us comfort is the large deals, the stability of discretionary spend, and our advancements in GenAI, where we have completely transformed the company,” Parekh said.