• Friday, June 21, 2024

Business

GenAI adoption won’t lead to job losses: Infosys CEO

Salil Parekh said Infosys sees technological advancements as avenues for expansion and growth, rather than as tools for reducing its workforce

Infosys MD and CEO Salil Parekh

By: Shajil Kumar

Infosys CEO Salil Parekh has said that Generative AI (GenAI) will not result in job losses at the company.

He told CNBC-TV18 that Infosys was not looking at rightsizing, downsizing, or any kind of job cuts due to GenAI as has happened with others in the industry.

Parekh said Infosys sees technological advancements as avenues for expansion and growth, rather than as tools for reducing its workforce.

While various global technology firms like Twitter and Meta have recently announced layoffs citing AI efficiencies as reasons for downsizing, Parekh said that Infosys is leveraging GenAI to enhance operational efficiency and reduce costs without diminishing its employee count.

He emphasised the coexistence of different technologies in large organisations and highlighted Infosys’s commitment to training its workforce in GenAI.

Parekh said the tech giant’s hiring strategy will depend on the 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 said.

The Bengaluru-based company registered its first year-on-year decline in headcount for the first time since 2001. Infosys’ headcount for the financial year 2024 was 317,240 as against 343,234 employees in the previous year.

Parekh is confident of meeting its constant currency revenue guidance for FY25, which stands at 1-3 per cent. “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,” he said.

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