News: Infosys layoff spree continues: 200 employees fired for the fourth time

Talent Management

Infosys layoff spree continues: 200 employees fired for the fourth time

This latest round of layoffs adds to the growing number of trainees dismissed by Infosys this year, following the termination of around 300 in February, 35 in March, and 240 in April.
Infosys layoff spree continues: 200 employees fired for the fourth time

In a fresh wave of layoffs, Narayana Murthy’s Infosys has reportedly let go of 195 trainees from its Mysuru campus, according to a recent report by Moneycontrol. This marks the fourth round of job cuts in just a few months, raising concerns among the industry as the IT services giant continues to streamline its workforce. The reason for the latest round of terminations? Poor performance and the failure of trainees to meet internal assessment criteria.

The layoffs, affecting primarily freshers undergoing training, were confirmed through an internal email accessed by Moneycontrol. The communication reportedly stated, “Further to the announcement of the results of your final assessment attempt, please be informed that you have not met the qualifying criteria in the ‘Generic foundation training program’ despite the additional preparation time, doubt-clearing sessions, several mock assessments, and three attempts. As a result, you will not be able to continue your journey for the apprenticeship program.”

This latest round of terminations adds to a growing list of layoffs by the company, which has already dismissed hundreds of trainees since the beginning of the year. Prior to this incident, Infosys had let go of approximately 300 trainees in February, another 35 in March, and 240 on April 18. With the latest 195 layoffs, nearly 800 trainees have been affected since February, a staggering figure that has raised eyebrows across the industry.

The recurring theme behind these layoffs is the trainees’ failure to meet the performance standards required in the company’s internal assessments. Despite being given additional preparation time, multiple mock assessments, and doubt-clearing sessions, the trainees have struggled to pass the critical final assessments that would allow them to continue with the company.

For Infosys, these assessments are a key part of their apprenticeship program, designed to evaluate and equip young talent with the necessary skills to succeed in the IT services industry. However, the recent layoffs suggest that the company's expectations for these trainees are high, and failure to meet those standards has led to their termination.

Though this decision might appear harsh, Infosys has defended the process by stating that the trainees involved were part of its apprenticeship programme, not full-time employees. The company clarified that the concept of “layoffs” does not apply to apprentices, as they were never officially employed by Infosys. Instead, they were in a training capacity, which some argue might not offer the same legal protections under labour laws.

In an effort to soften the blow for those affected, Infosys is offering several options to support the trainees who were let go. The company is providing free upskilling opportunities via partners such as NIIT and UpGrad, with approximately 250 affected individuals already enrolled in these courses. These upskilling initiatives are aimed at helping the trainees enhance their skill sets and increase their employability.

Additionally, Infosys is also providing outplacement services for those who are looking for alternative career opportunities. Around 150 former trainees have reportedly signed up for these services, which aim to help them secure jobs elsewhere.

For those who opt to undergo Infosys’ Business Process Management (BPM) training programme, the company is offering a 12-week course, designed to provide an alternative career path. This initiative is aimed at those who wish to continue working within the company but are being transferred to a different domain. For those who do not wish to pursue further training, Infosys is providing transport from Mysuru to Bangalore, along with a standard travel allowance to return to their hometowns.

This series of layoffs has drawn some attention from labour authorities. In February, after similar layoffs were reported, the Karnataka Labour Department had issued a clean chit to Infosys, stating that the term “layoff” does not apply in these cases. A senior official from the department explained, “They were all only trainees, and some underwent training for three months. We cannot call it a layoff, so these labour laws are not applicable in such cases. A layoff applies only when there is regular employment. There is no employer-employee relationship at all. They were all apprenticeship trainees, not employees.”

This legal distinction highlights the complexity of the situation. While the trainees might not have the same rights as full-time employees, their large-scale dismissal has nonetheless drawn attention to the ethics of such practices, especially when such terminations involve young professionals just starting out in their careers.

As Infosys continues to conduct these rounds of layoffs, the company’s reputation is coming under scrutiny. While it has offered support for those affected, the frequency of such layoffs raises questions about the company’s approach to talent development and retention. 

What is clear is that these layoffs mark a significant shift in the company’s approach to workforce management, with a sharp focus on performance and results. As Infosys continues its training programmes and restructures its workforce, it will be crucial to see how these changes impact its long-term talent pipeline and its reputation in the Indian job market.

For now, Infosys is offering a lifeline to those affected, but the growing number of layoffs suggests that the company is preparing for a more competitive, streamlined future—one that may come at the cost of some of its fresh talent.

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Topics: Talent Management, #Layoffs, #HRTech, #HRCommunity

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