Infosys layoffs not coming any time soon, says CEO Salil Parekh: ‘Growth back'

Salil Parekh believes generative AI adoption will grow over time, similar to past digital and cloud technology trends.

Infosys CEO Salil Parekh said generative AI is evoking strong interest from clients and there is a huge mobilisation of GenAI within the company as well. However, he asserted that the company is not likely to conduct any layoffs owing to new-age technologies. On the USD 3.9-billion GST tax demand, Parekh said Infosys has already given out updates and made disclosures in the market and has no further update to share.

Salil Parekh, CEO and Managing Director of Infosys, while addressing a press conference in Bengaluru.(AFP)

"We have no new update. The status is as it was in terms of what we shared externally a few days ago," he said when asked if the company will be making provisions for the same.

Salil Parekh said there is a huge reception from clients on Generative AI and likened it to the adoption curve seen for digital and cloud technologies in the past as he believes GenAI adoption will increase with time as enterprises experience the benefits and business outcomes arising from it.

He said, “So we think this will accelerate as time goes on but we will wait-and-watch how it develops. It is a bit like, some years ago we started with digital or with cloud... these things start-off in a certain way... and then we see what benefits clients are getting. If they see benefits are substantial, more and more adoption will happen.”

Salil Parekh said that he does not expect the advent of GenAI to lead to any layoffs in the company. He said, “So, at this stage, my sense is that the technology will help business to grow even further as opposed to anything else. We don't see any layoffs in Infosys with these new-age technologies, and in fact, we continue to increase our recruiting as the economic environment changes... as you saw in Q1 we had a strong growth quarter-on-quarter and year-on-year, we have a very good large deals win number. And with that we increased our guidance. So we see growth slowly coming back.”