Infosys denies Layoff Reports
TNI Bureau: India’s software firm Infosys denied a newspaper report that had said that the company is planning to fire up to 5000 employees for their poor performance. It was also reported that the sacking of employees will be as part of its effort to reduce cost amidst slow economy.
Denying the report, the company said that the underperformers were leaving their jobs; it is not as part of layoffs.
Earlier, the Economic Times had said that Bangalore-based Infosys, country’s $100 billion outsourcing sector, was sacking up to 5,000 underperforming staff. It said that the workers were asked to leave the company instead of being given six months for retraining.
Infosys has more than 150,000 employees. It said that there were no mass layoffs at the company and the underperformers, who left the company; their number was significantly lower than the mentioned in the paper.
“We have a robust performance management system that includes structured appraisals and performance feedback,” Infosys said in a statement. It said that the company encourages “chronic underperformers” to seek other jobs. This is done regularly and is not a one-time event, it added.
Infosys is struggling to expand its business after it failed to get targeted profit in the US and Europe due to slow economy. Since there is too much competition in the IT sector, it is hard to gain more in other projects.