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Infosys lays off 2,200 staff
Business

Infosys lays off 2,200 staff

Agency News

After Cognizant, now Infosys, India's second-biggest outsourcer, is laying off employees in the mid and senior level to reduce employee cost and flatten the organisation structure.

The Bengaluru-based company is reportedly cutting workforce by 10% or around 2,200 people, in the JL6 band (job level 6), an internal job code for senior managers. The company has 30,092 employees in the JL6, JL7 and JL8 bands.

A leading publication citing sources said the company will lay off 2-5% of the workforce at the associate (JL3 and below) and middle (JL4 and 5) levels. That translates into 4,000-10,000 people. Infosys has 86,558 and 1.1 lakh employees at the associate and middle bands respectively.

As many as 2-5% of the 971 senior executives (in the ranks of assistant vice-presidents, vice presidents, senior vice-presidents and executive vice-presidents) will also be asked to go. That would mean up to 50 executives.

The company said, 'As a high-performance organisation, involuntary attrition is integral to normal course of business and this should not be interpreted as any mass trimming across any level.'

There is some belt-tightening happening right across the industry as a consequence of customers needing more complex skills, and less staff needed to deliver traditional support services with advances in automation, Mr. Phil Fersht, CEO of US-based HfS Research, said.