Infosys: A Tale of Layoffs and Hikes in the IT Landscape
April 19, 2025, 4:00 am
The world of technology is a double-edged sword. On one side, it promises growth and innovation. On the other, it can swiftly cut jobs and dreams. Infosys, a titan in the IT sector, is currently navigating this turbulent sea. Recent developments reveal a company in flux, balancing between hiring fresh talent and letting go of those who don’t meet the mark.
On April 18, 2025, Infosys made headlines by terminating 240 trainees who failed internal assessments. This decision came just a day after the company announced plans to hire over 20,000 freshers in the fiscal year 2026. The juxtaposition of these two events paints a stark picture of the current state of the IT industry.
The layoffs are not isolated incidents. Earlier this year, Infosys had already let go of more than 300 trainees for similar reasons. The company’s emails to the affected individuals were clear and unyielding. Despite multiple attempts and additional preparation, the trainees did not meet the qualifying criteria for the apprenticeship program. It’s a harsh reality in a competitive field where only the strongest survive.
In response to the layoffs, Infosys is offering upskilling programs through NIIT and UpGrad. This gesture, while commendable, feels like a band-aid on a larger wound. The IT sector is facing a subdued demand environment. Infosys has forecasted revenue growth of only 0 to 3 percent for the current fiscal year. This uncertainty looms large over the company, casting shadows on its future.
Amidst the layoffs, Infosys is also rolling out salary hikes. The Chief Financial Officer, Jayesh Sanghrajka, announced that a significant portion of wage increments was implemented in January, with the remainder effective from April 1. Most employees will see hikes ranging from 5 to 8 percent, which is notably lower than in previous years. Top performers might receive 10 to 12 percent increases, but the overall sentiment is one of caution.
The hiring plans for FY26 signal a desire for growth. Infosys aims to onboard over 20,000 freshers, a move that reflects optimism in the long-term potential of the industry. However, this ambition is tempered by the reality of recent layoffs. The company’s workforce, which stood at over 323,000, is not immune to the shifting tides of the market.
In the fourth quarter of FY25, Infosys reported a modest increase in headcount, with only 199 new employees added. The attrition rate also rose to 14.1 percent, up from 13.7 percent in the previous quarter. This suggests that while the company is hiring, it is also losing talent at a concerning rate. The balance between recruitment and retention is delicate, and Infosys must tread carefully.
Financially, Infosys is facing challenges. The company reported an 11.7 percent decline in consolidated net profit for the March quarter, down to ₹7,033 crore from ₹7,969 crore the previous year. Despite exceeding revenue guidance for the fiscal year, the decline in profit raises questions about sustainability. The IT giant is at a crossroads, where growth must be carefully managed against the backdrop of economic uncertainty.
The landscape of the IT industry is evolving. Companies are increasingly relying on automation, AI, and digital solutions to enhance efficiency. Infosys has positioned itself as a leader in these areas, emphasizing its strengths in cost efficiency and consolidation. However, the reliance on technology also means that the workforce must continuously adapt. The pressure to upskill is relentless, and not all will make the cut.
The dual narrative of layoffs and salary hikes reflects a broader trend in the industry. Companies are tightening their belts while simultaneously investing in future talent. The challenge lies in maintaining morale among existing employees while navigating the complexities of a changing market. Infosys must ensure that its workforce feels valued, even as it makes difficult decisions.
In conclusion, Infosys stands as a microcosm of the IT industry. It embodies the promise of innovation and the harsh realities of a competitive landscape. The company’s recent actions highlight the delicate balance between growth and sustainability. As it moves forward, Infosys must navigate these waters with care, ensuring that it not only survives but thrives in an ever-evolving environment. The future is uncertain, but with strategic foresight, Infosys can chart a course toward success.
On April 18, 2025, Infosys made headlines by terminating 240 trainees who failed internal assessments. This decision came just a day after the company announced plans to hire over 20,000 freshers in the fiscal year 2026. The juxtaposition of these two events paints a stark picture of the current state of the IT industry.
The layoffs are not isolated incidents. Earlier this year, Infosys had already let go of more than 300 trainees for similar reasons. The company’s emails to the affected individuals were clear and unyielding. Despite multiple attempts and additional preparation, the trainees did not meet the qualifying criteria for the apprenticeship program. It’s a harsh reality in a competitive field where only the strongest survive.
In response to the layoffs, Infosys is offering upskilling programs through NIIT and UpGrad. This gesture, while commendable, feels like a band-aid on a larger wound. The IT sector is facing a subdued demand environment. Infosys has forecasted revenue growth of only 0 to 3 percent for the current fiscal year. This uncertainty looms large over the company, casting shadows on its future.
Amidst the layoffs, Infosys is also rolling out salary hikes. The Chief Financial Officer, Jayesh Sanghrajka, announced that a significant portion of wage increments was implemented in January, with the remainder effective from April 1. Most employees will see hikes ranging from 5 to 8 percent, which is notably lower than in previous years. Top performers might receive 10 to 12 percent increases, but the overall sentiment is one of caution.
The hiring plans for FY26 signal a desire for growth. Infosys aims to onboard over 20,000 freshers, a move that reflects optimism in the long-term potential of the industry. However, this ambition is tempered by the reality of recent layoffs. The company’s workforce, which stood at over 323,000, is not immune to the shifting tides of the market.
In the fourth quarter of FY25, Infosys reported a modest increase in headcount, with only 199 new employees added. The attrition rate also rose to 14.1 percent, up from 13.7 percent in the previous quarter. This suggests that while the company is hiring, it is also losing talent at a concerning rate. The balance between recruitment and retention is delicate, and Infosys must tread carefully.
Financially, Infosys is facing challenges. The company reported an 11.7 percent decline in consolidated net profit for the March quarter, down to ₹7,033 crore from ₹7,969 crore the previous year. Despite exceeding revenue guidance for the fiscal year, the decline in profit raises questions about sustainability. The IT giant is at a crossroads, where growth must be carefully managed against the backdrop of economic uncertainty.
The landscape of the IT industry is evolving. Companies are increasingly relying on automation, AI, and digital solutions to enhance efficiency. Infosys has positioned itself as a leader in these areas, emphasizing its strengths in cost efficiency and consolidation. However, the reliance on technology also means that the workforce must continuously adapt. The pressure to upskill is relentless, and not all will make the cut.
The dual narrative of layoffs and salary hikes reflects a broader trend in the industry. Companies are tightening their belts while simultaneously investing in future talent. The challenge lies in maintaining morale among existing employees while navigating the complexities of a changing market. Infosys must ensure that its workforce feels valued, even as it makes difficult decisions.
In conclusion, Infosys stands as a microcosm of the IT industry. It embodies the promise of innovation and the harsh realities of a competitive landscape. The company’s recent actions highlight the delicate balance between growth and sustainability. As it moves forward, Infosys must navigate these waters with care, ensuring that it not only survives but thrives in an ever-evolving environment. The future is uncertain, but with strategic foresight, Infosys can chart a course toward success.