Infosys implements cost-cutting measure: Average variable pay reduced to 60%
In February of this year, Indian IT tech company Infosys gained attention for terminating 600 freshers who did not pass an internal assessment. Similar to other tech firms, Infosys is also implementing cost-cutting measures due to the challenging economic conditions.
As per a recent India Today report, Infosys has reduced the average variable pay of its employees by 40% for the quarter ending in March 2023. This implies that, on average, Infosys employees will receive 60% of the originally promised variable pay.
In an email sent to employees, the company acknowledged that while the overall financial year 2022-2023 showcased strong performance, the last quarter was affected by a "volatile market and unforeseen events,” reported Moneycontrol.
“While FY23 was a year of strong performance overall, the quarter that went by was impacted by a volatile market and unforeseen events,” the email read.
In addition, the email emphasised the importance for employees to stay vigilant regarding market fluctuations and encouraged them to view the current climate as a chance to unite as a team and maintain their dedication in adapting to the evolving business environment.
Infosys reassured its employees that as an organisation, they have consistently demonstrated resilience and effectively responded to market disruptions while striving to progress forward.
According to reports, employees are expected to receive notification of their variable pay within this month.
In 2022, there were reports indicating that Infosys had reduced its employees' variable pay by 30% in Q1 and 35% in Q3.