Infosys CEO Salil Parekh said the company will not conduct layoffs despite the disruptive impact of artificial intelligence on the IT industry.
This commitment comes as the offshoring sector faces a fundamental shift in operating models. The move signals a strategy of workforce expansion and upskilling rather than reduction as AI alters how clients consume technology services.
Parekh said that AI is driving a massive change in client expectations. "It's a huge shift in terms of what clients are looking for," Parekh said.
While some firms in the technology sector have reduced headcounts to offset automation, Infosys is pursuing a growth-oriented approach. Parekh said the company has not done any layoffs in the last year and does not expect any to occur in the near future.
To support this transition, the company is focusing on new talent. Parekh said the company plans to hire 20,000 [1] freshers from campuses as AI reshapes the industry. This hiring surge is intended to align the workforce with the evolving needs of the market.
Beyond recruitment, the company is prioritizing AI partnerships to integrate new capabilities into its service offerings. This approach aims to maintain competitiveness as AI continues to redefine the traditional offshoring model, shifting the focus from labor arbitrage to AI-driven efficiency.
“"We have not done any layoffs in the last year and we don't see anything of that sort coming up."”
The decision to hire thousands of new employees while ruling out layoffs suggests that Infosys views AI as a catalyst for new service offerings rather than a simple replacement for human labor. By aggressively recruiting campus talent, the company is betting that the 'huge shift' in client demand will create more high-value roles than the automation of routine tasks will eliminate.
