Infosys cuts Q4 bonuses after 11.7% profit decline
Infosys, one of India’s leading IT services firms, is reducing performance bonuses for the fourth quarter of FY25, citing a steep 11.7% fall in net profits. The Bengaluru-based company reported ₹7,033 crore in Q4 net profit, reflecting the ongoing headwinds in the global software services sector. As a result, eligible employees expecting full bonuses will now receive lower payouts, according to internal communications reviewed by media outlets.
The announcement was made during an internal town hall, where HR executives and delivery managers addressed employee concerns. While acknowledging the dedication of staff — many of whom worked extended hours and weekends — the leadership conveyed that the reduced bonuses are a temporary response to ongoing market conditions. Top performers, they said, could expect favourable bonus recommendations once growth stabilises.
The bonus cut comes in the wake of a cautious revenue guidance issued by Infosys for FY26. The company flagged continued challenges such as muted client spending, delayed deal closures, and overall market volatility. The subdued growth outlook reflects the industry-wide slowdown affecting major Indian IT firms, which have been struggling to navigate the global tech services downturn.
Infosys also used the opportunity to remind staff of its historic commitment to employee rewards. In better-performing quarters, the company has consistently issued generous hikes, promotions, and even international assignments. The latest move, company leaders assured, is not indicative of a shift in long-term strategy but a measure to maintain financial prudence during a challenging cycle.
Earlier this year, Infosys rolled out salary hikes of 5% to 8% for most of its employees. For Q3 FY25, employees in core functions such as delivery and sales received bonuses averaging 80%. However, with Q4’s reduced earnings, these figures have now been revised downward.
The company currently employs over 323,000 people globally. While Infosys did not disclose the exact percentage of the bonus for Q4, multiple employees have confirmed that full 100% payouts will not be issued, and some may receive significantly lower bonuses depending on business unit performance and individual ratings.