Infosys Sacks 5000 Engineers?

Another shocking news to the IT community. Sources says Infosys sacking 5000 jobs  because of the performance reasons. Economic Time says “ 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.

But many people believe that it is not purely based on the performance problems. according to them, the company was going through some difficulties including the revenue loss, and resulted a down in its stock prices etc…and they frozen the salary hike blaming bad market conditions and insufficient visibility into near-term growth, and a few of other new generation companies overtaken the infosys recently and won some of the projects and contracts with infosys. Also the resource attrition rate was also the highest in the infosys last year may be the reason for such an immediate reaction.

Source: Times Of India