Infosys Lets Go of 240 Employees, Offers Two Exit Options
Infosys has laid off 240 employees, offering them two options as part of the exit process. Here's what the company proposed.
Layoffs
Infosys, one of India’s top IT companies, has terminated 240 trainees who were unable to clear internal assessments. This includes candidates recruited as System Engineers (SE) and Digital Specialist Engineers (DSE). The decision, taken on April 18, marks another round of performance-based exits at the company, following similar layoffs earlier this year.
In February, more than 300 trainees had to part ways with Infosys for the same reason. Again in March, 30 to 45 trainees were released from its Mysuru campus after failing internal evaluations. These employees had joined Infosys after waiting nearly two-and-a-half years due to the pandemic-induced delays and macroeconomic uncertainty.
Despite the layoffs, Infosys is offering affected trainees two career development options:
1. Business Process Management (BPM) Pathway: Trainees can opt for free BPM training through UpGrad, after which they may apply for roles within Infosys BPM Limited.
2. IT Skill Enhancement Program: In partnership with NIIT, Infosys is offering a complimentary IT fundamentals training program to enhance job readiness for other IT sector opportunities.
In an internal email, Infosys stated:
“If you want to explore new opportunities outside Infosys, we are arranging professional outplacement services. Additionally, we’re offering Infosys-sponsored external training for potential roles in BPM. Alternatively, you may choose to strengthen your IT skills through the Infosys-sponsored IT Fundamentals Training Program to support your IT career journey.”
Industry Under Pressure
The decision comes amid challenging market conditions. Due to reduced client spending in key markets like the US and Europe, the Indian IT sector is experiencing slower project inflows. Infosys has forecasted a revenue growth of 0–3% for FY 2025–26, underscoring the ongoing slowdown.
The company’s latest financials reveal the strain:
Net Profit (Q4 FY25): ₹7,038 crore (down 12%)
Expenses: ₹32,452 crore (up 6.7%)
Revenue Growth: 8%
These figures reflect the broader pressures in the IT industry, including margin compression and cautious client spending. In response, companies like Infosys are not only tightening hiring practices but also raising the bar for internal assessments.
Many of the impacted trainees completed their engineering education during the COVID-19 pandemic and were recruited via virtual interviews. Unfortunately, they were released during training before being deployed to live projects.
With reduced hiring and increased scrutiny, the IT landscape remains uncertain. Infosys’ attempt to offer reskilling and alternate career paths provides a softer landing—but also highlights the growing need for adaptability in a shifting industry.
