Infosys cuts 240 entry-level staff, plans 20,000 fresh hires
BENGALURU, INDIA — Infosys has terminated 240 entry-level employees after they failed internal assessments, marking the second such layoff wave this year. The IT giant is offering affected staff upskilling programs while preparing to hire over 20,000 freshers in FY26.
Workforce restructuring reflects market pressures
Infosys’ latest layoffs highlight tightening performance standards as the company faces muted revenue growth. The Bengaluru-based firm projects just 0-3% growth this fiscal year, prompting stricter evaluation of trainees previously; 300 were cut in February for similar failures.
Despite terminations, Infosys is investing in upskilling through partners like NIIT and UpGrad. More so, the company wage hikes averaged 5-8% for most employees, with top performers seeing 10-12%, signaling selective retention amid cost scrutiny.
“We are on track on wages. A large part of wage increments were rolled out in January and the balance is rolled out which is effective from April 1,” said Jayesh Sanghrajka, Chief Financial Officer of Infosys.
Hiring strategy balances cuts with fresher recruitment
While trimming underperformers, Infosys plans aggressive fresher hiring, targeting 20,000 in FY26. The dual approach aims to align talent with evolving demand, as the October 2024 batch saw nearly 50% of trainees dismissed post-assessments.
However, repeated layoffs and modest salary hikes lower than previous years, reflect persistent sector uncertainty, even as the firm commits to apprenticeship programs for new hires.
Infosys recently soared to rank #11 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies. It is set to acquire two regional tech consultancies—Texas, United States-based MRE Consulting and Australia’s The Missing Link—in a bid to expand its global capabilities in energy trading and cybersecurity.
