Infosys layoffs in 2024: 240 trainees terminated after failing assessments. Explore reasons, financial impacts, upskilling programs, and industry trends.
Infosys Layoffs: Why 240 Trainees Were Terminated and What’s Next
Overview of the Infosys Layoffs
Infosys layoffs made headlines in April 2024 after the IT giant terminated 240 trainees who failed to clear the company’s “Generic Foundation Training Program.” Despite multiple attempts, mock tests, and extended preparation time, these trainees could not meet the qualifying criteria, leading to their dismissal. This follows a similar incident in February 2024, where over 300 trainees were let go from the Mysuru campus.
The decision underscores Infosys’ strict adherence to performance benchmarks amid declining profits. The company reported an 11.7% year-on-year net profit drop in Q4 FY25, reflecting broader challenges in the IT sector due to reduced client spending and macroeconomic slowdowns.
Why Did Infosys Terminate 240 Trainees?
Failing Assessments Despite Multiple Chances
Infosys’ training program includes rigorous assessments covering technical and foundational skills. Trainees are given three attempts, additional doubt-clearing sessions, and mock tests. However, the 240 terminated employees failed to meet the minimum 35% score threshold even after these interventions.
Macroeconomic Pressures
The IT industry has faced headwinds since 2023, with clients delaying projects and cutting budgets. Infosys, which onboarded these trainees in October 2024 after a two-year hiring freeze, prioritized retaining only top performers to align with reduced revenue forecasts.
Support Measures for Affected Trainees
To soften the blow, Infosys rolled out several initiatives:
- Upskilling Programs: Free courses via NIIT and UpGrad for roles in the BPM industry or IT fundamentals (UpGrad’s official site).
- Financial Aid: One month’s salary, travel allowances, and temporary accommodation.
- Rehiring Opportunities: Trainees completing external programs can reapply for Infosys BPM roles.
- Career Counseling: Professional outplacement services and mental health support.
Previous Layoffs and Trainee Backlash
In February 2024, Infosys fired over 300 trainees from its Mysuru campus. Nearly 100 affected employees petitioned the Prime Minister’s Office (PMO) to intervene, citing prolonged onboarding delays and unfair termination policies.
This pattern highlights systemic issues in India’s IT sector, where companies hire en masse during growth phases but resort to layoffs during downturns.
Financial Performance and Industry Context
Infosys’ Q4 FY25 net profit fell to ₹7,033 crore, an 11.7% YoY decline. The slump mirrors trends at peers like TCS and Wipro, which also face margin pressures. Analysts attribute this to:
- Reduced demand for digital transformation projects.
- High attrition rates increasing recruitment costs.
- Global recession fears impacting client decisions.
For deeper insights, explore Moneycontrol’s report on IT sector challenges.
What’s Next for Impacted Trainees?
Terminated trainees have two pathways:
- BPM Industry Training: A 12-week program for roles in business process management.
- IT Fundamentals: A 24-week course to strengthen technical skills.
Infosys has also partnered with NIIT to offer certifications, improving employability.
FAQ: Infosys Layoffs 2024
Q: How many trainees were laid off in 2024?
A: 240 in April and over 300 in February.
Q: Can terminated trainees rejoin Infosys?
A: Yes, after completing external training programs.
Q: What caused Infosys’ profit decline?
A: Macroeconomic slowdowns and reduced client spending.
Final Thoughts
The Infosys layoffs reflect broader turbulence in the IT sector. While the company’s support measures are commendable, the incident raises questions about hiring practices and employee preparedness. For more updates on industry trends, subscribe to Taazatidings.