NEW DELHI: Indian IT giant Infosys is laying off nearly 10 per cent of its senior-level staff and between two to five per cent of associate and mid-level employees, as per a report by The Times of India (TOI) report. League of India has not independently verified the report.
“As a high-performance organisation, involuntary attrition is integral to a normal course of business and this should not be interpreted as any mass trimming across any level,” Infosys told TOI.
The company will be trimming workforce in the JL6 or job level 6 band, an internal code for senior managers and in the JL3 and JL4/JL5 bands — the associate and middle levels, respectively.
It currently has about 30,092 JL6, JL7 and JL8 level employees and 86,558 employees at levels up to JL3, 1.1 lakh employees are at the JL4 and JL5 levels.
This means nearly 2,200 people in the JL6 band alone and between 4,000 to 10,000 people in JL3 and below and middle (JL4 and 5) levels will lose their jobs.
Two to five per cent of the company’s 971 senior executives with titles such as assistant vice presidents, vice presidents, etc, may be asked to leave, the report suggested. This translates to about 50 executives.
Around 50 senior executives including vice-presidents, assistant vice-presidents, senior vice-presidents and executive vice-presidents may also be asked to go.
Though Infosys had laid off people based on performance in the past, this time it’s different and the numbers are comparatively high. “The focused and targeted way in which layoffs are happening now has not happened in recent years,” Times Now mentioned as sources saying.
In the June quarter, COO Pravin Rao said that involuntary attrition was higher in that quarter as compared to the same quarter in the previous year.
In September quarter, the company had reported 19.4 per cent attrition, out of which 18 per cent was voluntary. The company saw 1.4 per cent involuntary attrition in the July-September period.
Infosys shares dropped as much as 2.5% in intra-day trade on Tuesday, i.e. 5 November, after the news came out.