After a recent Moneycontrol interview with Srikrishna Ramakarthikeyan (AKA R Srikrishna), the Chief Executive Officer (CEO) of Hexaware Technologies, speculations emerged that the company’s recent layoffs in its BPO division were triggered by Artificial Intelligence (AI).
In response to the reports, Hexaware Technologies talked with Business Today to clarify that its latest batch of layoffs was related to the seasonal fluctuations in the BPO market. The company clarified that while they do believe that AI will have a long-term impact on the structure of the BPO workforce, it was not the cause of the recent changes in personnel.
“We would like to provide the following clarification: During an interview with Moneycontrol on April 30, 2025, our CEO provided an update on the overall workforce change in the Company during Q1CY’25. He mentioned that during Q1CY’25, the Company added approximately 100 people in the IT business and reduced approximately 500 people in the BPO business,” Hexware shared with Business Today.
“He further mentioned that there may be long-term impact of AI on the BPO business. This is the basis of Management’s belief and the Company’s investments in AI. However, it is clarified that the reduction in the workforce in the BPO Business of the Company for Q1CY’25 was not on account of AI (as opposed to what is indicated in the News Article), but is largely on account of the seasonal nature of business,” the company went on to add.
Hexaware’s comments on the short-term and long-term impact of AI on the workforce come after the rising worry across industries that AI might take over existing roles and responsibilities. As per experts though, employees and employers should focus on how people can work with AI and make full use of the technology.