2200 IT Professionals Lose Jobs in Infosys: Analytics is Safe!
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, the daily mentioned.
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.
When the daily contacted Infosys on the move, 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.”
The focused and targeted way in which layoffs are happening now has not happened in recent years. The company has in the past let go of people based on performance. But it’s different this time and the numbers appear higher. Specialised skill sets such as Analytics remain untouched.
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, Phil Fersht, CEO of US-based HfS Research, said. ” There has beed a rush of professionals to specialised training organisations like OrangeTree Global” said Director Subhra Bishnu “After the CTS layoffs earlier this month our online training modules and classroom programs on Data Analytics witnessed a huge surge”
Another global IT major Capgemini has also off laid off nearly 500 employees in India following some of its customers scaling back on projects and some other accounts not ramping up as fast as the company expected. The French IT services firm allows employees to be on the bench for about 90 days by their business units and then moves them to a corporate pool to find billable projects, sources told the publication. The laid-off employees were those who went through this process and could not find billable projects.
Worth mentioning here is that Capgemini has employed 1.08 lakh employees in India, more than half of its global strength. When asked about the layoffs, the company said, “As with any large company in our industry, there is a constant flow of departures, reskilling, reassignments and arrivals. Globally we also continue to increase — at our Q3 results (October 24) our overall headcount was up 5.1% year on year.”