Infosys has delayed hikes in its staffers’ remuneration amid speculation that it is planning to fire hundreds of employees. In a letter to the firm’s employees, Chief Operating Officer Pravin Rao said the compensation review for mid-level employees has been deferred until July and beyond to reduce costs and ensure payments, NDTV Profit reported on Friday.
“This year, the Compensation Review will be effective on July 1, 2017 for JL5 and below in India. For the remaining employees, we will roll out the compensation review in subsequent quarters,” NDTV quoted Rao’s letter as saying. He said the review would also include some dismissals based on performances. The firm’s chief operating officer said geopolitical events had also influenced its traditional business model.
Earlier this month, Infosys had said it would not hesitate to fire staff on the grounds of poor performance. “A continued low feedback on performance could lead to certain performance actions, including separation of an individual,” the Bengaluru-based company had said.
Reports of layoffs and plans to cut down on employee numbers are doing the rounds in the Information Technology sector as software giants are trying to tide over slow growth trajectories. Companies are facing a tough time because of automation, a change in technology, stress on digital services, stricter visa rules and a sluggish global economy.