Key Takeaway:
- Infosys plans to hire 20,000 fresh graduates despite industry-wide headcount cuts.
- The company has officially committed to avoiding layoffs during the 2026 fiscal year.
- AI currently generates 5.5% of total revenue and is growing rapidly.
Infosys CEO Salil Parekh says the firm will avoid layoffs and hire 20,000 graduates in 2026, betting artificial intelligence will expand, not reduce, demand for engineering talent.
Infosys Commits To Hiring As Rivals Cut Jobs
While parts of the global IT industry trim headcount, Infosys is taking a different path. Parekh says the company has not conducted layoffs in the past year and does not expect to do so.
The stance contrasts with moves by competitors such as Tata Consultancy Services and Cognizant, which have announced job cuts amid rising automation and cost pressures. Reports indicate thousands of roles have been eliminated across the sector.
“We have not done any layoffs in the last year, and we don’t see anything of that sort coming up,” Parekh says in an interview.
Infosys CEO Salil Parekh instead plans to recruit 20,000 fresh graduates from campuses this year. The hiring push comes even as the company’s overall headcount declined in recent quarters, reflecting industry-wide adjustments.
Analysts say the move signals a long-term workforce strategy focused on reskilling rather than downsizing. “Companies that invest in early talent pipelines may be better positioned for AI-led growth,” says a Mumbai-based IT analyst who tracks the sector.
AI Expands Work Scope, Not Demand Decline
Parekh rejects concerns that artificial intelligence will shrink employment opportunities in IT services. He describes the shift as structural, with changing roles rather than disappearing jobs.
“AI is expanding the scope of work, not shrinking it,” he says. “The nature of tasks for freshers will evolve, but the demand for engineers remains strong.”
Infosys is training employees to work both with and without AI tools. Engineers are being prepared to build, review, and validate code generated by advanced systems, including foundational AI models.
The company is also emphasizing deeper technical expertise. Parekh says there is “more attention to deep individual knowledge,” with subject matter specialization becoming increasingly valuable as routine coding tasks are automated.
Industry experts say this reflects a broader shift. Entry-level roles may involve supervising AI outputs, while experienced professionals focus on architecture, security, and domain-specific innovation.
“AI is not eliminating jobs but redefining them,” says a Bengaluru-based technology consultant. “The key challenge is how quickly companies can retrain their workforce.”
AI Emerges As Key Revenue Driver
Artificial intelligence is already contributing to Infosys’ business. Parekh says AI accounts for about 5.5 percent of the company’s revenue and is growing rapidly.
To accelerate adoption, Infosys CEO Salil Parekh is expanding partnerships with firms such as OpenAI and Anthropic. It is also deploying internal platforms, including Topaz Fabric, to scale AI-driven development.
The company sees AI as a core growth engine in the coming years, particularly in areas such as automation, data analytics, and enterprise transformation.
Despite optimism, challenges remain. The IT sector faces pressure from clients seeking cost efficiencies, and automation continues to reshape delivery models. Still, Infosys maintains that its approach balances efficiency with workforce stability.
Parekh says the company’s strategy is to align hiring with evolving skill needs rather than reduce staff. “We are preparing our people for the future of work,” he says.
As AI adoption accelerates, Infosys’ hiring commitment stands out in an industry navigating rapid technological change. Whether the approach proves sustainable may depend on how quickly demand for AI-enabled services grows.
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