Exl Service, a New York-based IT company, is restructuring its operations to meet the growing demand for generative artificial intelligence (AI). As part of this effort, the company is cutting 800 jobs, or less than 2% of its workforce. The layoffs will mainly affect junior staff in data analytics and digital operations in the US and India.
The job cuts are part of a broader strategy to invest in hiring skilled workers with expertise in advanced data, AI, and generative AI. The company is looking for candidates with experience in machine learning, natural language processing, and data science, among other areas. The new hires will be tasked with developing and implementing AI-powered solutions for Exl Service's clients, which include Fortune 500 companies in various industries.
Exl Service's restructuring reflects the company's new direction, which is evidenced by recent leadership changes. EXL's CEO, Rohit Kapoor, has been promoted to the role of board chair, while two senior leaders, Vikas Bhalla and Vivek Jetley, are taking on expanded roles that include integrating data and AI-led solutions.
The restructuring involves re-evaluating existing roles and bringing in top talent with expertise in data and AI. The aim is to ensure that the talent and skill sets are closely aligned with the evolving needs of EXL's clients.
The company's analytics arm reported revenue of $182 million in the most recent quarter, up 6.2% from the year prior. However, costs have gone up alongside headcount, and some deals have dried up. The company has faced a tougher macroeconomic environment, with businesses less willing to invest in nonessential IT projects.
Exl Service's restructuring is a strategic move to capitalize on the growing demand for generative AI, which is a subset of AI that can create new content, such as text, images, and music, based on patterns and data inputs. The company's decision to invest in generative AI is a response to the increasing need for businesses to automate and streamline their operations, as well as to create new products and services that leverage AI's capabilities.
In conclusion, Exl Service's restructuring is a strategic move to meet the growing demand for generative AI and to ensure that the company's talent and skill sets are closely aligned with the evolving needs of its clients. While the job cuts are unfortunate, the new hires will bring valuable skills and expertise to the company, positioning it for long-term success in the AI landscape.