Infosys Reduces Workforce Amidst Market Challenges

In a significant move, Infosys, a leading player in the IT services sector, has made the tough decision to let go of 240 entry-level employees who did not meet the necessary criteria in their internal assessments. This action, confirmed by a report from Moneycontrol, reflects broader challenges within the IT industry, especially in light of recent economic conditions.

Context Behind the Layoffs

This latest round of layoffs follows a previous termination of over 300 trainees in February, highlighting ongoing difficulties in maintaining workforce performance. The company has been proactive in offering support to those affected, providing free upskilling programs in partnership with NIIT and UpGrad.

• Recent Layoff Details:
  • 240 entry-level employees affected
  • Previous layoffs involved more than 300 trainees
  • Free training offered through NIIT and UpGrad

Revenue Growth Forecast Adjusted

The layoffs come at a time when Infosys is grappling with a demand slowdown. During a recent announcement of its fiscal fourth-quarter earnings, the company revised its revenue growth projections for FY26 to a range of 0-3% in constant currency, down from the previously estimated 4.5-5%. This adjustment signals the tightening conditions in major markets like the US and Europe.

Communication to Trainees

In an email dated April 18, Infosys communicated the results of the final assessments to the trainees, stating, “Despite various support measures including additional preparation sessions and multiple attempts, you have not met the criteria for the Generic Foundation Training Program. Consequently, you will not be able to progress further in the apprenticeship program.”

The company reassured the affected employees by offering professional outplacement services to assist them in finding new opportunities. Additionally, Infosys is providing options for external training to prepare for roles in the Business Process Management (BPM) sector.

Support for Affected Employees

The company has also pledged to support the affected employees by providing:

• One month’s salary
• Accommodation for training needs
• Travel allowances from the training center in Mysuru to Bengaluru or their hometowns

Moreover, the company has made this initiative available to trainees impacted in February, reinforcing its commitment to employee development and support during transitions.

Future Hiring Plans Amidst Challenges

Even as it navigates these layoffs, Infosys has announced plans to hire 20,000 freshers in the current fiscal year, aiming to reinvigorate its workforce despite the prevailing uncertainties in the IT sector. Last year, the company successfully onboarded over 15,000 fresh graduates, demonstrating its ongoing commitment to cultivating new talent.

This multifaceted approach by Infosys reflects both the challenges facing the IT industry and the company’s efforts to adapt and support its workforce during these trying times. The outcomes of assessments for the next batch of trainees are expected soon, signaling that the company continues to evaluate and invest in its human resources strategy.