Infosys, one of India’s largest IT companies, has laid off approximately 700 employees at its Mysuru campus. These layoffs come just months after the affected employees were onboarded in October 2024. The move has drawn criticism from the Nascent Information Technology Employees Senate (NITES), which has labeled the layoffs “shocking and unethical.” Reports suggest that the layoffs were triggered by internal qualifying tests that freshers failed to pass. Employees allege that Infosys altered the test syllabus, making it difficult to clear. The layoffs have sparked concerns over hiring policies and job security in India’s IT sector.
1. Overview of Infosys
1.1 Founders and Background
Infosys was founded in 1981 by Narayana Murthy and six other engineers. Over the years, it has grown into one of India’s most valuable IT companies, providing software development, consulting, and outsourcing services to businesses worldwide. The company is headquartered in Bengaluru, Karnataka, and is publicly traded on the NSE and BSE.
1.2 Business and Revenue Model
Infosys generates revenue through various streams, including IT services, where it provides digital transformation, AI, and cloud computing solutions. Its consulting division offers strategic IT solutions to enterprises, while its software development arm builds enterprise-level applications for global clients. Additionally, Infosys operates in business process outsourcing (BPO), managing operations across multiple industries. The company also develops proprietary AI and automation platforms, further expanding its product offerings.
2. Understanding the Layoffs at Infosys Mysuru Campus
2.1 Background of the Layoffs
The layoffs were a result of Infosys’ internal training and assessment process. Freshers recruited in 2022 had to wait over 2.5 years for onboarding, which finally happened in October 2024. However, Infosys required them to pass internal qualifying tests after foundational training at the Mysuru campus. Those who failed after three attempts were asked to leave.
2.2 Employee Allegations
Employees claim that the test syllabus was modified after they joined, making it harder to pass. They also allege that security personnel prevented them from using mobile phones, restricting their ability to document the situation or seek help.
2.3 NITES’ Response
NITES, a labor rights group, condemned Infosys’ actions, calling them coercive. The group plans to file a complaint with the Ministry of Labour and Employment.
3. Industry-Wide Challenges in IT Hiring
The IT sector is witnessing widespread workforce restructuring, with Infosys among several companies laying off employees due to evolving business models, AI adoption, and automation. These mass layoffs, particularly after long onboarding delays, have sparked ethical concerns, prompting employee rights groups to advocate for stricter regulations to protect freshers from such uncertainties.
4. Impact on Infosys and Its Future Workforce Strategy
Infosys’ recent layoffs triggered a 1.07% drop in its stock price, reflecting investor concerns over the company’s hiring policies. In response, Infosys defended its decision, stating that freshers were informed about the qualifying tests in their contracts and emphasizing that the assessments help maintain high-quality hiring standards. However, this move has raised questions about the company’s approach to talent management, highlighting the need for Infosys to reassess its hiring and training strategies to sustain its reputation in India’s highly competitive IT job market.
5. Learning for Startups and Entrepreneurs
5.1 Transparency in Hiring Practices
Startups must ensure transparency in employment policies to maintain trust and avoid backlash.
5.2 Ethical Workforce Management
Handling layoffs ethically is crucial to maintaining brand reputation and employee trust.
5.3 The Importance of Skill Development
Continuous upskilling should be a priority for both employers and employees to adapt to evolving industry standards.
6. About The Startups News
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