Will ITC Infotech Merger Cause Job Cuts? Happiest Minds CEO Clarifies Employment Plans

Happiest Minds Technologies leadership has ruled out layoffs following its planned merger with ITC Infotech, emphasising that the multi-billion-dollar deal centers on talent acquisition and advanced capabilities rather than cost-cutting.

Merger Structure and Workforce Continuity

Addressing a press conference following the merger announcement, executives from the Bengaluru-based IT firm stated that ITC's leadership explicitly stipulated the retention of the entire workforce and existing management team. Happiest Minds Technologies Stock Update: Shares Plunge on ITC Infotech Merger News.

"One of the requests and stipulations from ITC was that each and every Happiest Mind continues. One of the primary reasons for making this acquisition is the deep capabilities in digital data, cybersecurity and AI. They don't want to lose this capability," said Happiest Minds CEO Joseph Anantharaju, reports PTI.

Management noted that both organisations maintain high operational utilisation rates - ITC Infotech at 83 to 84 per cent and Happiest Minds at 80 per cent - leaving no excess capacity for headcount reduction. Venkatraman Narayanan, Managing Director of Happiest Minds, added that minimal overlaps exist in primary focus areas and top-tier client rosters. “The question of layoffs doesn’t arise at all. We should be building more capabilities. Even in the age of AI, you still need human beings to deliver or to provide oversight," Narayanan said.

Transaction Details and Strategic Goals

Under the transaction agreement, ITC Infotech - a wholly-owned subsidiary of ITC Ltd - will acquire a 22.1 per cent stake in Happiest Minds Technologies for approximately INRD 1,330 crore. The purchase of 3,36,61,700 equity shares from promoter Ashok Soota and Ashok Soota Medical Research LLP will occur in two tranches. Following the stake purchase, Happiest Minds will amalgamate into ITC Infotech, creating an AI-first enterprise targeting a USD 1 billion turnover by financial year 2028. The combined organization will feature a global workforce exceeding 19,000 professionals, spanning high-potential verticals such as hi-tech, healthcare, and education technology. PayPal Layoffs: Fintech Giant Lays Off 164 Employees in Ireland as Part of Global Restructuring Programme. 

The transaction is slated for completion within the next 15 months. Upon finalization of the merger, ITC Infotech is expected to list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Post-amalgamation, ITC Ltd will hold a 73.4 per cent stake in the combined entity, with Happiest Minds shareholders retaining the remaining 26.6 per cent.

(The above story first appeared on LatestLY on Sep 01, 2026 05:39 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).