BANGALORE: Infosys has begun sacking employees at the bottom of the performance pile, returning to a practice it adopted during the peak of the global economic crisis in 2008 and 2009, according to people familiar with the development.
The renewed lack of tolerance for poor performance, which will affect up to 5,000 employees, is indicative of the pressure the software company faces to curtail costs while pivoting towards a more aggressive sales strategy.
The Bangalore-based company is resorting to retrenchment by suspending a plan crafted by co-founder NR Narayana Murthy to help under performers come up to scratch. Instead of giving under performing staff up to six months for retraining, India’s second-largest software company is asking the worst performers, about 3-4% of the 1.5-lakh workforce, to leave straightaway.
Infosys spokeswoman Sukanya Ghosh did not reply to emails, phone calls and text messages seeking the company’s comments.
This is the latest in a series of management decisions perceived as employee-unfriendly. Some months ago, Infosys, which has been lagging the industry in growth for over a year, had frozen salary hikes, blaming bad market conditions and insufficient visibility into near-term growth. It relented eventually and announced increments after its main rivals revised salaries for staff.
“Earlier, companies would go the extra mile to retain them (poor performers). But lately, due to slow business growth, they are seriously looking at downsizing,” said Kris Lakshmikanth, CEO of Headhunters India, a human resource consultancy.
With a sales growth forecast of about 5% for the year to March 2013, Infosys figures at the bottom among India’s top IT firms. Analysts expect Infosys to further lower growth guidance when it announces earnings for the three months to December on January 11. (Source ET) Click Here for Infoys Career
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