Infosys to Hire 20,000 Freshers While TCS Slashes 12,000 Jobs in AI Restructuring

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01 Aug 2025
5 min read

News Synopsis

At a time when the global tech industry is grappling with automation-induced job cuts and workforce restructuring, Indian IT major Infosys has made a striking announcement. The company is preparing to onboard 20,000 fresh graduates in 2025, signaling optimism about the future of artificial intelligence (AI) and the role of human talent in driving this transformation.

In contrast, major players like Tata Consultancy Services (TCS) are taking a different route. According to reports, TCS is trimming approximately 2% of its global workforce, impacting around 12,000 employees. This move aligns with a growing industry-wide trend where companies are turning to automation and AI to streamline operations and cut costs.

Infosys CEO Emphasizes AI-Centric Hiring Strategy

“Our utilisation is running at a good level…”

Infosys CEO Salil Parekh confirmed the company’s decision, stating, “Our utilisation is running at a good level. All of the people that are joining us, are getting trained and deployed on projects. And the people across the whole company are at that high utilisation.”

The upcoming recruitment drive reflects the company's intention to invest in AI-driven services by building a robust and adaptable workforce that is ready to meet the evolving demands of clients globally.

Massive AI Training Initiative Underway

Over 2.75 Lakh Infosys Employees Already Trained

According to Parekh, Infosys has already trained about 2.75 lakh employees in AI and related technologies. This strategic move highlights Infosys’s long-term view that upskilling the workforce is critical to navigating the disruptive power of AI while maintaining service excellence.

A Clear Departure From Industry Trends

Infosys Expands While Peers Downsize

While companies like Microsoft, IBM, Intel, and HCLTech continue to implement job cuts under the guise of restructuring, Infosys is defying the tide. TCS’s layoffs, for instance, are part of a larger restructuring strategy to improve efficiency. HCLTech has also hinted at a similar direction.

But Infosys is placing a bet on growth and transformation through people empowerment and skill development rather than reduction. It views AI as an enabler, not a replacement.

A Strategic Investment in the Future

AI Expected to Boost Productivity and Efficiency

Infosys's internal forecasts suggest that AI can improve productivity by 5% to 15% in software development. Even more significantly, its Finacle core banking platform could experience up to a 20% gain in efficiency.

Rather than cutting jobs, Infosys plans to future-proof its workforce by equipping them with the AI literacy and project deployment skills needed in a rapidly changing digital landscape.

Tech Sector Layoffs Continue Elsewhere

Pressure Mounts Across the Industry

Despite Infosys's bold hiring initiative, the broader IT industry is still under significant pressure. Numerous companies are expected to continue layoffs as they adjust to new business realities and client expectations shaped by AI.

In this environment, Infosys stands out as a contrarian, choosing long-term investment in talent over short-term cost-cutting measures.

Conclusion: A Positive Surprise Amid Global Uncertainty

While the IT sector battles waves of layoffs, Infosys’s commitment to hiring freshers and training employees reflects a future-ready mindset rooted in optimism and growth. Its approach suggests a deep belief that AI, when integrated with skilled human capital, can act as a productivity multiplier rather than a job killer. This move may serve as a benchmark for how tech companies can responsibly embrace automation while retaining their human edge.

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