After Cognizant, Infosys Plans To Cut 10,000 Middle, Senior Level Staff; Capgemini Fires 500 Employees
Indian IT giant – Infosys Ltd is reportedly planning to lay off thousands of employees at the middle and senior levels.
The company has rebuffed the move as mass trimming and called it an integral step for smooth running of a high-performance organisation.
“As a high-performance organisation, involuntary attrition is integral to the normal course of business and this should not be interpreted as any mass trimming across any level”, The Times Of India quoted Infosys.
The company said that it is firing people who are not matching up to the expected performance standards.
“There is no planned layoff. We have performance reviews and people who are not performing are asked to leave. This is normal, there is no targeted layoff,” chief operating officer (COO) UB Pravin Rao said.
The tech giant is sacking 10 per cent of its workforce in the JL6 band (job level 6), which refers to the level of senior managers.
This means that the company will cut 2,200 jobs at that particular level (job level 6). The company currently has 30,092 employees in the JL6, JL7, and JL8 bands.
The company’s share fell 1.86 per cent to Rs 695.80 on the Bombay Stock Exchange (BSE) on November 5 at the back of the news.
The Economic Times reported that in addition to JL6 job cuts, it will also let go of employees working at the associate (JL3 and below) and middle (JL4 and 5) levels, which comprise of 2-5 percent of the workforce in these levels.
It is also reported of the total 971 senior executives, the company will lay off 2.5 per cent of people holding the ranks of vice-presidents, senior vice-presidents, executive vice-presidents. This is equivalent to 50 job losses at the executive level.
IT major Cognizant, which has over 2 lakh employees working in India, exited content operations business recently.
Capgemini, a French multinational corporation with a massive workforce in India has also laid off nearly 500 employees. The company blamed the slow down in business as the reason for layoffs.