Bengaluru: Infosys Ltd’s chief operating officer UB Pravin Rao has assured employees that the management is not planning any layoffs, and just under-performers might be asked to leave.
“I would like to put to rest any speculation around planned layoffs. As has been the case in the past, we will primarily see some performance based exits,” Rao wrote in a contact to all employees on Wednesday.
Seven associated with the biggest IT firms in India, including Infosys, intend to ask at the least an overall total of 56,000 employees to leave this present year, Mint reported on Friday.
“As you are aware, the last financial year was a challenging one; our Q4 results were below expectations, the industry is going through challenging times and our core services business continues to be commoditized. In addition, geopolitical events are further disrupting the traditional business model,” Rao wrote.
He sought the support of employees to greatly help the management tide throughout the difficult times.
“We are working hard to get our momentum back, and I’m confident that with your support, this will be possible sooner than later.”
Infosys’s senior management is currently wanting to address growing concerns among employees, a lot of whom are getting jumpy that during these challenging times, many of them might be asked to leave the firm. Infosys has recently placed more than 3,000 of their 30,000 senior employees (Rank of JL6 and above) into the category of employees needing improvement. Additionally, Infosys also placed on notice another 3,000 junior employees, making many genuinely believe that the organisation could ask 6,000 employees to go out of the firm in the current year.
For the time being, Infosys declines to comment on what amount of employees have already been asked to go out of in today’s quarter.
“Our performance management process provides for a bi-annual assessment of performance,” a spokeswoman for Infosys said. “We do this every year and the numbers could vary every performance cycle”
In this financial year, the nearly 170,000 junior employees of Infosys are certain to get salaries that reflect the annual hike awarded to them from 1 July, in the place of April. Rao would not give a reason for the delay.
The 30,000 senior executives will have to wait longer with regards to their annual hikes. Rao said that the business will perform the compensation review in subsequent quarters.