Infosys CEO Salil Parekh rules out layoffs, plans 20,000 campus hires as AI reshapes IT industry

In a stark contrast to industry rivals like TCS and Cognizant, who have enacted significant job cuts in the face of increasing automation, Infosys is charting a different course. CEO Salil Parekh has announced a commitment to hire 20,000 new graduates this year, reinforcing the company's stance against layoffs. During an interview with Moneycontrol, Parekh emphasized that there have been no layoffs in the past year and expressed confidence that this trend will continue. This announcement comes at a time when competitors have been reducing their workforce, with TCS reportedly letting go of 12,500 employees, while HCLTech, Oracle, and Cognizant have also made cuts. Challenging the prevailing narrative that AI will diminish the need for talent, Parekh argued that the evolution brought on by AI is more structural than it is existential. He stated, "AI is expanding the scope of work, not shrinking it," clarifying that while the nature of tasks for new hires may evolve, the demand for skilled engineers will remain strong. Infosys is actively preparing its engineers to work efficiently with AI tools, as well as to develop and assess code generated by advanced models. Parekh highlighted the increasing importance of deep expertise in specific subjects, suggesting that as AI takes over routine coding tasks, specialized skills will become more valuable. Furthermore, Parekh noted that AI currently contributes approximately 5.5% to Infosys' revenue, with expectations for significant growth in the coming years. To facilitate this transition, Infosys is strengthening its partnerships with AI leaders like OpenAI and Anthropic, in addition to launching internal initiatives like Topaz Fabric, aimed at enhancing AI-driven development on a large scale.