Infosys, one of the leading IT companies in the country, was previously in the spotlight when its founder, Narayana Murthy, suggested a 70-hour workweek. Now, the company is back in the news after laying off hundreds of employees. Infosys has sought an investigation into the matter after facing criticism for terminating a large number of trainees from its Mysuru campus in Karnataka.
The Centre has referred the issue to the Karnataka Labour Department following a complaint filed by an independent IT employees' union. Last week, Infosys admitted to the layoffs but defended its decision, citing company policy. However, the company has faced widespread criticism for terminating trainee employees just months after hiring them.
Why Did Infosys Lay Off 400 Employees?
Around 400 trainees at Infosys' Mysuru campus were unable to clear an internal exam despite three consecutive attempts. As a result, they were dismissed. According to a report by MoneyControl, on February 7 at 9:30 a.m., about 50 trainees were called for a discussion with their laptops. Security personnel were stationed outside the room, while bouncers were present inside.
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The employees had received an email a day earlier instructing them to maintain confidentiality and not discuss the meeting with anyone. During the meeting, they were asked to sign "mutual separation" letters. Some trainees, speaking anonymously, alleged that the eligibility criteria for the 2024 batch were too strict. They claimed that coaches had warned them about the difficulty of the test, suggesting that many would not pass.
The tests assessed employees' proficiency in Java Programming and Database Management Systems (DBMS). The passing percentage was increased from 50% to 65%, and the curriculum was expanded to require about 200 hours of study. However, study time was significantly reduced, making it difficult for trainees to prepare adequately.
"It’s cruel. It’s a big company, so trainees are afraid to speak out," one affected employee told MoneyControl. Another trainee alleged that an Infosys official asked them to vacate their seat by 6 p.m. on their last day.
One female trainee from Madhya Pradesh reportedly requested to stay the night and leave the next day, but an Infosys official allegedly refused, saying, "We don’t know. You are no longer part of the company. Vacate the premises by 6 p.m." Many of the laid-off trainees had joined Infosys after a waiting period of about two and a half years following their undergraduate studies. These employees were offered jobs in 2022 but were only onboarded in October 2024.
Infosys has been criticised for dismissing a large number of employees. The Nascent Information Technology Employees Senate (NITES), an independent IT employees' union, has accused Infosys of terminating around 700 trainees, though the company claims the actual figure is closer to 350.
Defending its decision, Infosys stated that all trainees undergo basic training at its Mysuru campus and must pass an internal exam. Employees are given three attempts to clear the test, failing which they are not retained. "This process has existed for over two decades and ensures the availability of high-quality talent for our customers," Infosys said in a statement to PTI.
NITES has approached the Union Labour Ministry, alleging that Infosys forcibly laid off campus recruits who had waited two years to join the company after receiving their offer letters. The union has demanded that Infosys reinstate the terminated employees and face punitive action for violating the Industrial Disputes Act, 1947, and other labour laws.
"Infosys has taken a shocking and unethical step. It has started forcibly removing around 700 campus recruits who joined just a few months ago," said NITES president Harpreet Singh Saluja. The union further alleged that Infosys deployed "bouncers and security personnel" during the dismissal process to intimidate employees.
NITES has warned that Infosys' actions set a dangerous precedent for the IT industry, raising concerns about employment security for new recruits in the sector.