Infosys rules out layoffs as AI shift drives hiring, not job cuts

Even as artificial intelligence redraws the contours of the global IT services industry, Infosys has taken a clear and contrarian stand: no job cuts.

Speaking in an interview on April 30, CEO Salil Parekh said the company has carried out 0% layoffs over the past year and does not foresee any workforce reductions, even as AI and automation increasingly shape software development and delivery.

“We have not done any layoffs in the last year and we don’t see anything of that sort coming up,” Parekh said, underscoring a strategy that prioritizes stability amid industry churn.

AI to reshape work, not reduce it

Parekh described AI as a structural shift, but rejected the idea that it will shrink the workforce in the near term.

“AI is expanding the scope of work, not shrinking it,” he said, indicating that while job roles may evolve, demand for skilled talent will remain intact.

The stance puts Infosys at odds with peers such as TCS, HCLTech, Oracle and Cognizant, many of which have undertaken restructuring or layoffs over the past year to align with automation-led efficiencies.

Hiring push continues at scale

Rather than cutting jobs, Infosys is maintaining its hiring momentum. The company plans to onboard around 20,000 fresh graduates this year — roughly in line with last year’s intake —signaling continued reliance on entry-level talent despite the rise of AI tools.

This approach reinforces the company’s belief that human capital will remain central, even as workflows become increasingly automated.

Reskilling over redundancy

At the core of Infosys’ AI strategy is reskilling. Parekh said engineers are being trained to work across both traditional coding methods and AI-driven systems.

“We’re encouraging engineers to build code the way they used to, and then introduce new tools and foundation models,” he said, adding that employees are also being trained to assess AI-generated code—making technical judgement and quality control more critical than ever.

AI already delivering business impact

AI is no longer a future bet for Infosys—it is already contributing 5.5% to the company’s revenue, with that share expected to grow rapidly.

The firm is strengthening partnerships with players like OpenAI and Anthropic, while expanding internal platforms such as Topaz Fabric to scale AI-led development.

Parekh noted that while entry-level roles may transform, AI will not eliminate the need for talent. Instead, it will elevate the importance of deep expertise and specialized skills.

“There is more attention now on deep individual knowledge and becoming a subject matter expert,” he said.

A defining industry divide

Infosys’ no-layoff stance highlights a growing divide within the IT sector, where companies are still navigating how to balance automation with human talent.

As AI adoption accelerates, Infosys is positioning itself firmly on the side of hiring and reskilling — betting that the technology will create more opportunities than it displaces.