Infosys could hand out pink slips to hundreds of mid & senior-level employees as it carries out bi-annual performance review among a challenging business environment. The development happens at a time when its peers Wipro & Cognizant are taking similar steps to control costs.
Interestingly, Infosys has announced it will hire 10,000 Americans in the next 2 years and open 4 centers in the United States as it tries to counter moves by the United States to tighten visa norms.
“Our performance management process provides for a bi-annual assessment of performance… A continued low feedback on performance could lead to certain performance actions, including separation of an individual and this is done only after feedback,” Infosys spokesperson stated in an emailed statement.
The spokesperson did not disclose the number of people to be affected, although news pegs the number to be in hundreds.
“We do this every year and the numbers could vary every performance cycle,” the spokesperson told, adding that the assessment is based on individual goals and strategic priorities of the company.
Last week, the United States – based Cognizant had rolled out a voluntary separation
IT companies have been one of the largest recruiters in the nation. However, they have informed that increasing automation of processes would lead to a decrease in hiring in developing years.
While the outsourcing model has placed India on the global map, growing scrutiny and rising protectionist sentiment are also posing challenges for the $140 billion Indian IT industry.
Companies are now working towards lessening their dependence on work visas and instead of hiring more locals to ensure the flow of work for clients, even though it impacts their margins.