Hexaware Technologies shares clarification on the recent job cuts, says this

Shares of Hexaware Technologies were trading higher on Friday even as the IT firm clarified on a news story related to recent job  cuts. Hexaware said 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 the business.

In the afternoon session, Hexaware shares were trading 1% higher at Rs  696 on BSE today. Market cap of the firm stood at Rs 42,277 crore.

With reference to a news article in news website Moneycontrol, the firm said, "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."

"He further mentioned that there may be long-term impact of AI on the BPO business. This is basis 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," said the firm in a communication to bourses. 

In its recently announced Q1 earnings, net profit rose 17.02% to Rs 327.20 crore against Rs 279.60 crore during the quarter ended March 2024. 

Sales rose 16.7% to Rs 3207.90 crore in Q4 against Rs 2748.80 crore during the quarter ended March 2024. 

EBITDA rose 24.32% to Rs 532.20 crore in the last quarter against Rs 428.10 in the March 2024 quarter. EBITDA climbed rose to 16.59% in Q1 against 15.57% in the year ago period. Hexaware Technologies follows January to December as a calender year.

Shares of Hexaware Technologies made a subdued market entry on February 19, 2025. The IT solutions firm listed at Rs 745.50 on the NSE, reflecting a 5.30% drop from its issue price of Rs 708 per share. In a similar vein, the software giant opened at a 3.25% discount at Rs 731 on the NSE.