Hexaware Breaks Silence, Clarifies Stance on Layoff Rumors

In response to recent worries about layoffs in its business process outsourcing (BPO) segment, Hexaware Technologies clarified that the cuts were not related to artificial intelligence (AI), as some media reports had claimed.

The corporation clarified that the seasonality of its business activities was the main cause of the workforce adjustments. After a story by a renowned media outlet prompted the clarification, Hexaware responded in greater detail to another media house.

Hexaware underlined in its statement that although AI may have long-term effects on the BPO sector, AI technology had nothing to do with the Q1CY'25 staff cutbacks. Rather, they were propelled by consistent business oscillations linked to seasonal demand in the BPO industry.

BPO Business Witnessing Decline

According to Hexaware's description of the workforce changes in Q1CY'25, the BPO segment had a 500-person decline, while the IT division saw an increase of about 100 personnel. Variations in client needs and market conditions that affect demand at different times of the year were cited as the cause of this seasonal variability, which is typical in the BPO sector.

The business recognised the increasing significance of AI and continued to invest in the technology with the goal of improving service delivery and operational efficiency. It emphasised, however, that the present layoffs were a reaction to the cyclical nature of the BPO industry and were not the result of these AI-driven initiatives.

According to a Hexaware statement, its CEO provided an update on the overall workforce changes during Q1CY'25 in an interview with a media outlet on April 30, 2025. He brought up the possible long-term effects of AI on the BPO industry, but it's important to make clear that the seasonality of the business—not AI—was the reason for the BPO workforce's decline.

 This clarification was made in the midst of Hexaware's impressive financial success. According to the company's most recent Q1CY'25 earnings report, net profit increased 17.02% to INR 327.20 crore from INR 279.60 crore in the same quarter of 2024. Additionally, sales increased 16.7%, from INR 2748.80 crore in Q1 2024 to INR 3207.90 crore.

Hexaware's Overall Performance Remains Robust

Hexaware's overall performance is strong even with the BPO division's employment cutbacks. In order to enhance its service offerings and operational efficiency, the company has made significant strides in its IT operations and is still investing in AI and other cutting-edge technology.

A crucial component of Hexaware's operations, the BPO industry is frequently impacted by shifts in customer needs and seasonal demand. The corporation clarified that these layoffs were consistent with industry norms, which dictate that companies adjust their workforces in response to market demands.

Hexaware emphasised that the company's strategic usage of AI was focused on increasing business process efficiency over time, even though the long-term role of AI in changing the BPO landscape is still possible.

The company's current workforce adjustments were unconnected to AI. Hexaware is still optimistic about its chances for future expansion. The business is well-positioned for future success because of its IT division's impressive performance and its unwavering focus on creating AI solutions.

Hexaware wants to remain at the forefront of industry trends as the BPO sector develops and new technical innovations are implemented, guaranteeing its capacity to adjust to the shifting needs of the market.