Infosys may go the lay-off way: Reports

Infosys Ltd. | IT - Software | IT & ITES | BSE: 500209 | NSE: INFY

04 Jan 2013 Evaluate

Infosys, resuming to a practice it adopted during the peak of the global economic crisis in 2008 and 2009, has reportedly began handing over pink slips to employees at the bottom of the performance pile. The renewed lack of tolerance for poor performance, which will affects the jobs of 5,000 employees, is indicative of the pressure the software company faces to curtail costs.

The Bangalore-based company is resorting to retrenchment by suspending a plan crafted by co-founder NR Narayana Murthy to help underperformers come up to scratch. Instead of giving underperforming staff up to six months for retraining, India's leading software services provider is reportedly urging the worst performers, about 3-4% of the 1.5-lakh workforce, to quit. However, Infosys has clearly denied the reports alleging the company laying off 5,000 employees.

According to the report, the company has done away with a performance enhancement programme, introduced by founder N R Narayanmurthy, where the under-performing employees were given six months of retraining.

Meanwhile, IT major, had in the end of 2012, reportedly put on back burner its recruitment plans for the proposed half of the 35,000 employees this fiscal because of a continued run of sluggish growth. Back in November, the IT major deferred hiring of 17,000 new recruits by three months. The company now plans to defer recruitment of 17,000 to the first half of next fiscal (2013-14).