EXL Service Holdings is cutting 800 positions, which is less than 2 percent, of its nearly 55,000 headcount.
The company aims to reposition itself to meet customer demand for generative artificial intelligence.
The restructuring involves the layoff of 400 employees, with the remaining 400 being offered opportunities to transition to different roles within the organization.
The cuts predominantly affect entry-level positions in data analytics and digital operations across the US and India.
To bolster its expertise in advanced data and AI, including generative AI, EXL Service is actively recruiting individuals proficient in these areas.
Recently, the firm underwent several leadership promotions to foster data and AI-led solutions for its clientele.
The decision to realign its workforce reflects a broader trend within the tech industry, where companies increasingly prioritize AI technologies.
Major tech firms, including Amazon, recently reduced positions in its cloud-computing sector amid a broader realignment towards AI-focused projects.
This reduction comes at a time when the demand for professional services and consulting, which surged during the pandemic, has begun to wane.
Which has led to massive job cuts across the sector.
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Tech workers, particularly those without AI skills, face challenges as job opportunities in non-AI domains become increasingly scarce.
Despite the layoffs, EXL has expanded its team significantly since the end of 2020, adding 22,000 employees.
However, the company is navigating a complex macroeconomic environment characterized by cautious spending on IT projects, especially those deemed non-essential.
EXL’s analytics division, responsible for nearly half of its revenue, was impacted as its clients in insurance and banking scaled back on marketing analytics expenditures.
