Infosys says it won’t follow the industry’s layoff trend despite rapid AI adoption
The company plans steady fresher hiring while reshaping roles for the future
Across the sector, major firms continue cutting jobs amid automation and slowing demand
Amid widespread churn in the IT sector, with global and Indian tech giants cutting jobs as they ramp up investments in artificial intelligence (AI), Infosys appears to be offering a measure of stability.
In an interview with Moneycontrol, Infosys CEO Salil Parekh said the company does not plan to follow the layoff trend, even as AI reshapes the IT services landscape.
“We have not done any layoffs in the last year and we don’t see anything of that sort coming up,” Parekh said. He added that AI will expand the scope of work rather than shrink it, even though entry-level roles are expected to evolve. While the nature of tasks performed by freshers may change, demand for talent will continue, he noted.
1 April 2026
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Parekh said the AI transition marks a structural shift in how IT services are delivered, but stopped short of calling it a near-term threat to jobs.
He also said AI currently contributes about 5.5% to Infosys’ revenue and is growing rapidly, adding that it will become a key growth driver in the coming years. Infosys is also expanding its collaborations with companies such as OpenAI and Anthropic, while introducing in-house platforms like Topaz Fabric to scale AI-driven development across its operations.
Despite a dip in overall headcount during the January–March quarter, Infosys is maintaining its hiring momentum. The company plans to recruit at least 20,000 fresh graduates in FY27.
Chief Financial Officer Jayesh Sanghrajka confirmed the commitment, stating that Infosys had already hired more than 20,000 freshers in FY26 and intends to continue at the same pace in the coming year.
Layoffs Across IT
In contrast, several global and Indian IT firms are reducing workforce numbers. According to Mint, Cognizant plans to cut about 4,000 jobs, or roughly 1% of its workforce even as slowing demand and a push toward automation weigh on growth and prompted the company to lower its full-year outlook.
Oracle has reportedly reduced nearly 19% of its workforce, while Tata Consultancy Services laid off about 12,000 employees in 2025. Meanwhile, Amazon has also carried out layoffs affecting hundreds of employees in India.
Reports indicate that over 30,000 tech job cuts were announced globally in the first two months of 2026, with India recording the highest numbers in Asia.
Infosys Q4FY26 Performance
Infosys reported a 20.8% year-on-year rise in consolidated net profit to ₹8,501 crore for Q4 FY26. On a sequential basis, profit increased 27.8%, supported by improved operating performance.
Revenue for the quarter stood at ₹46,402 crore, up 2% sequentially and largely in line with expectations. At the operating level, EBIT rose 16.6% quarter-on-quarter to ₹9,743 crore, with margins expanding to 21% from 18.4% in the previous quarter.
Profit before tax increased 17% sequentially to ₹10,797 crore, while earnings per share came in at ₹21.01. The company also announced a final dividend of ₹25 per equity share for FY26.
