Infosys to hire fewer freshers as AI disrupts IT sector
29 Dec 2025
Infosys, India's second-largest software services provider, has hinted at a possible reduction in the hiring of fresh graduates.
The prediction comes as the IT sector continues to be disrupted by artificial intelligence (AI) and other automation technologies.
The company's management discussed this trend with analysts from BMO Capital Markets, Keith Bachman, Bradley Clark, Adam J. Holets and Jonathan Stein.
Increased productivity and revenue per headcount
Future expectations
The BMO Capital Markets analysts noted that Infosys expects to hire fewer freshers in the future due to increased productivity.
They also expect a possible rise in revenue per headcount.
"Management expects headcount to grow modestly over the next few years due to increasing employee productivity," the research firm said in its note on December 16.
Infosys's hiring outlook contrasts with peers
Industry comparison
Infosys's prediction of a decline in entry-level jobs is in stark contrast to its industry peers.
Companies like Cognizant Technology Solutions Corp., Tata Consultancy Services Ltd, and HCL Technologies Ltd have all projected an increase in their intake of freshers.
This difference highlights the varying strategies different companies are taking amid the ongoing AI disruption and its impact on hiring practices.
Infosys's hiring plans for the current fiscal year
Current hiring
Despite the forecasted decline in future hiring, Infosys has revealed its plans for the current fiscal year.
The company's CFO Jayesh Sanghrajka said they expect to hire around 20,000 freshers this year.
"We had given guidance in terms of the fresh hiring for the year, and we had said 20,000 is what we expect," he said during a post-earnings press conference on October 16.
Revenue and hiring figures for FY25
Financial performance
Infosys's revenue for the fiscal year 2025 was $19.28 billion, a year-on-year growth of 3.85%.
The company had also hired 15,000 out-of-college freshers in the last fiscal year.
These numbers show that despite the challenges posed by AI disruption and automation technologies, Infosys has been able to maintain its financial performance and continue hiring fresh talent.
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