Massive Job Cut: Why Infosys Terminated 700 Trainees From Its Mysuru Campus? Stock Price Ends Lower

Day by day the survival or bagging of a job in tech companies is getting intensely competitive and difficult. In a major development, India's second-largest IT company in terms of market value, Infosys has likely terminated somewhat 700 trainees from its Mysuru campus. The reason is reportedly because they failed the evaluation tests for three consecutive attempts. At the time of writing, Infosys stock price was trading in red.

As per the Times Now report, Infosys laid off about 700 employees that were onboarded in October last year. However, it also reached out to Infosys over the matter, which revealed the tally stands to about 350 employees who were sacked for failing internal assessment tests.

In other news, it was reported that Infosys is in the process of laying off 400 employees.

Sources familiar with the matter revealed to Money Control that Infosys is in the process of laying off 400 trainees at its Mysuru campus after they failed evaluation tests in three consecutive attempts. They revealed that these are about half of the trainees that Infosys onboarded in October last year. Another report of Economic Times also said that about 400 employees were summoned and given the exit letter.

The news portal cited Infosys statement which read, "At Infosys, we have a rigorous hiring process where all freshers, after undergoing extensive foundational training at our Mysuru campus, are expected to clear internal assessments. All freshers get three attempts to clear the assessment, failing which they will not be able to continue with the organisation, as is also mentioned in their contract."

Meanwhile, TOI quoted Harpreet Singh Saluja who is the President Of NITES. He said, in an unethical move, Infosys has begun forcefully laying off around 700 campus recruits who were onboarded few months ago. Saluja has informed that he is going to file a formal complaint against Infosys with India's Labour Ministry.

This comes at a time when Thirumala Arohi Mamunooru, Executive Vice President at Infosys said, "We have gone from on-campus learning to a digital learning ecosystem and are now embracing the Human + AI paradigm," as per Infosys X handler.

In an interview Arohi explained leveraging AI and ML technologies to accelerate employee learning goals, helping them upskill for career progression.

As of December 31, 2024, Infosys headcount stood at 323,379 employees, which was higher from 317,788 employees as of the September 2024 quarter. On year-on-year, Infosys hiring was marginally up from the headcount of 322,663 employees as of December 31, 2023.

By the end of Q3FY25, the company's voluntary attrition rate increased to 13.7% from 12.9% in Q2FY25.

Infosys share price closed at Rs 1902.20 apiece, down by 0.72% on BSE, with a market cap of Rs 7,89,845.70 crore on February 7.