After promising jobs to 10,000 Americans, Infosys to sack hundreds at home

Company joins Wipro and Cognizant in using pink slip route to control costs

Infosys could hand out pink slips to hundreds of mid- and senior-level employees as it carries out bi-annual performance review amid a challenging business environment.

The development comes at a time when its peers Wipro and Cognizant are taking similar measures to control costs.

Interestingly, Infosys has said it will hire 10,000 Americans in the next two years and open four centres in the US as it seeks to counter moves by the US to tighten visa norms.

"Our performance management process provides for a bi- annual assessment of performance... A continued low feedback on performance could lead to certain performance actions, including separation of an individual and this is done only after feedback," Infosys spokesperson said in an emailed statement.

The spokesperson did not divulge the number of people to be impacted, although reports peg the number to be in hundreds.

"We do this every year and the numbers could vary every performance cycle," the spokesperson said, adding that the assessment is based on individual goals and strategic priorities of the company.

Last week, US-based Cognizant had rolled out a voluntary separation programme for directors, associate VPs and senior VPs, offering them 6-9 months of salary.

Wipro, too, is learnt to have asked about 600 employees to leave as part of its annual "performance appraisal" even as speculations were that the number could go as high as 2,000.

IT companies have been one of the largest recruiters in the country. However, they have warned that increasing automation of processes would lead to reduction in hiring in coming years.

While the outsourcing model has placed India on the global map, increasing scrutiny and rising protectionist sentiment are also posing challenges for the $140 billion Indian IT industry.

Companies are now working towards reducing its dependence on work visas and instead hiring more locals to ensure continuity of work for clients, even though it impacts their margins.

Big three burden

• Infosys to lay off hundreds of mid- and senior-level employees as part of its bi-annual performance review
• Last week, Cognizant rolled out voluntary separation programme for directors, associate VPs and senior VPs, offering 6-9 months of salary
• Wipro last month sacked 600 following its annual performance appraisal