As per unconfirmed reports coming in, IT behemoth Infosys is all set to fire upto 15% of their managers.
The aim is to trigger faster decision making process.
Infosys has not yet confirmed this development, but has agreed that normal attrition is part of their business processes.
Find out who will be actually impacted here.
Infosys Can Fire Upto 15% Of All Managers
As per Economic Times, Infosys CEO Salil Parekh wants to implement a major restructuring exercise, wherein the pyramid of managers is reduced, and the distance between delivery heads comes down.
As a result of this massive restructuring exercise, 10-15% of the managers can be asked to leave the company.
Recently Infosys CEO’s salary was hiked by 27% and it’s now Rs 46 crore, one of the highest in the industry.
Which Employees Will Be Impacted?
This trimming exercise will mainly impact employees who are in J7 or higher levels.
J7 is considered as a consulting role, and consist of job profiles such as Consultants, AVPs, VPs and SVPs.
While there are 30,000 employees in the J6, 7, 8 levels, there are 13,000 employees in J7 level and above.
If 10-15% of the managers in J7 roles are fired, then 1300 employees can be impacted.
When asked about this, Infosys said, “We have no plans or targets for workforce reduction. Nor do we have any predefined percentage of exits as a result of our half-yearly and yearly performance cycles. However, as a performance-driven organisation, some involuntary attrition is integral to the normal course of business every year at Infosys.”
Job profiles from every aspect of the Infosys business model will be impacted: sales, delivery, BPO and support services.
What Is The Purpose Of This Restructuring?
As present, there is a 5-layer reporting structure in Infosys, and most of the biggest IT firms:
Delivery managers report to the senior delivery managers, who in turn report to delivery head.
Delivery head reports to service offering head, who reports to business unit head.
Now, the objective is to empower senior executives with more responsibilities and eliminate the in-between handlers, who basically possess people-skill, rather than coding skills.
An unnamed executive said, “We don’t want to handle too many handlers,”
A delivery manager gets a salary of Rs 35-40 lakh annual, and the senior delivery managers and others get even more.
Infosys can save tons of money by eliminating these handlers.
We will keep you updated, as more details come in
Comments are closed, but trackbacks and pingbacks are open.