Infosys Will Fire Senior Under-Performers & Hire Freshers To Save Rs 1000 Crore This Year
After media reports emerged that Infosys will fire upto 10-12,000 mid and senior level employees, the company issued a clarification yesterday.
From the statements issued in this regard, one this is sure: Infosys will unleash a phase of terminations and firings, and senior employees, who are under-performing, will be targeted.
Infosys Will Save Money By Firing Senior Employees
In their clarification, and an indirect message to all employees, Infosys CFO Nilanjan Roy has stated that the mass layoffs is not ‘planned’ as such, but yes, terminations will happen.
He said that under-performers will be targeted and they will be asked to leave. He described this process as ‘normal’.
He said, “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,”
He emphasised that there is no ‘targeted layoff’, as reported by media.
Employees Being Fired: Rs 1000 Crore Will Be Saved By Infosys
By firing experienced employees, who are under-performing, Infosys aims to save $150 million this year, which translates to Rs 1000 crore, approximately.
In order to complete the projects being handled by these under-performing seniors, Infosys will hire freshers, who can be recruited at a fraction of cost.
He said, “There are 21 tracks we are looking at for cost-optimisation. We are targeting USD 100-150 million in cost savings as the year goes on,”
The other ‘20 tracks’ which will be used for saving money wasn’t revealed, yet.
Infosys Blames Media For ‘Sensationalism’
In a direct attack on the media, which reported these news, Infosys has said that some media houses are creating sensationalism, by reporting the numbers related with employee terminations.
The company has clarified that Infosys has not revealed any numbers related to employees, who will be fired.
In a separate email shared with news agency IANS, Infosys said, “The media report is a mere speculation and sensationalisation with wrong data points, which the company never shared,”
Times of India had reported that approximately 12,000 employees from Infosys will be fired in the coming days, and these employees will belong to mid and senior level.
In the email, Infosys claimed that no employee will be fired, without any reason, and performance is one of the biggest reasons here.
The email further states, “We don’t hand over pink slips to our employees. We can’t share the data as they are internal processes. We don’t tell our people you are redundant and hence can leave tomorrow..”
Interestingly, Infosys is also finding it hard to contain attrition, which has zoomed past 24% level, and have devised ways to control it.
We will keep you updated, as more details come in.