Hexaware Technologies has addressed recent concerns about job cuts within its BPO division, clarifying that the reductions were not linked to artificial intelligence (AI), as suggested in some media reports. The company explained that the workforce changes were primarily due to the seasonal nature of its business operations.
The clarification followed an article published by Moneycontrol, prompting Hexaware to provide a more detailed response to Business Today. In its statement, Hexaware emphasised that while AI might have long-term implications for the BPO industry, the immediate workforce reductions in Q1CY’25 were unrelated to AI technology. Instead, they were driven by regular business fluctuations tied to seasonal demand within the BPO sector.
Hexaware outlined the workforce changes in Q1CY’25, noting that while the IT division saw an increase of approximately 100 employees, the BPO division experienced a reduction of around 500 employees. This seasonal fluctuation, common in the BPO industry, was attributed to variations in client needs and market conditions that impact demand at different times of the year.
The company acknowledged the growing importance of AI and its ongoing investments in the technology, which aim to enhance operational efficiency and service delivery. However, it stressed that these AI-driven initiatives were not the cause of the current job cuts, and that the layoffs were instead a response to the cyclical nature of the BPO business.
A statement from Hexaware to Business Today read, “During an interview with Moneycontrol on April 30, 2025, our CEO updated on the overall workforce changes during Q1CY’25. While he mentioned the potential long-term impact of AI on the BPO sector, it is crucial to clarify that the reduction in BPO workforce was due to the seasonal nature of the business, not AI.”
This clarification came amid strong financial results for Hexaware. In its recent Q1CY’25 earnings report, the company posted a 17.02% increase in net profit, reaching Rs 327.20 crore, compared to Rs 279.60 crore in the same quarter of 2024. Sales also rose by 16.7%, reaching Rs 3207.90 crore, up from Rs 2748.80 crore in Q1 2024.
Despite the workforce reductions in the BPO division, Hexaware’s overall performance remains robust. The company has made substantial progress in its IT operations and continues to invest in AI and other cutting-edge technologies to improve its service offerings and operational efficiency.
The BPO sector, a vital part of Hexaware’s business, is often subject to fluctuations due to seasonal demand and changes in client requirements. The company made it clear that these workforce reductions were in line with standard industry practices, where businesses scale their workforce up or down based on market needs.
While the long-term role of AI in transforming the BPO landscape remains a possibility, Hexaware stressed that the current staffing adjustments were unrelated to AI and that the company’s strategic use of the technology was focused on driving efficiencies in business processes over time.
Hexaware remains confident in its future growth prospects. With a strong performance in its IT division and a clear focus on the development of AI solutions, the company is positioned for continued success. As the BPO sector evolves and new technological advancements are incorporated, Hexaware aims to stay at the forefront of industry trends, ensuring its ability to adapt to the changing demands of the market.
The clarification regarding the recent layoffs sheds light on Hexaware’s approach to managing workforce adjustments in response to seasonal demand cycles. The company’s strategic investments in AI and IT solutions, combined with its agility in managing staffing levels based on business requirements, will likely remain key to its success as it moves forward.
