Indian IT services company Infosys will be cutting jobs in the middle and top level to reduce cost.
The Bangalore-based company is allowing people to leave the organization in the ranks of senior managers, associates as well as the middle bands.
In job level 6 that refers to senior managers, Infosys is laying of 10 percent of the staff, which translates to 2,200 people, Times of India reported. The IT services company has 30,092 employees in the job level 6, 7, and 8 bands.
In the job level 3 or below and the job levels 4 and 5, the company is trimming around 2-5 percent of the workforce. This translates to 4,000 to 10,000 employees. There are 86,558 in the associate band and 1.1 lakh employees in the middle band, respectively.
Around 50 of the 971 title holders, including assistant vice presidents, vice presidents, senior vice presidents and executive vice presidents are also likely to be handed pink slips.
The company said involuntary attrition is integral to normal course of business and it should not be interpreted as any mass trimming across any level.
Infosys had asked people to leave based on their performances in the past.
Infosys COO Pravin Rao in the June quarter said that involuntary attrition was higher in that quarter as compared to the same quarter in the previous year. In September quarter, the company had reported 19.4 percent attrition, out of which 18 percent was voluntary. The company saw 1.4 percent involuntary attrition in the July-September period.
Meanwhile, tech services major Capgemini has fired nearly 500 employees in India over slow growth of its projects and failure to ramp up some accounts. The company said departures, re-skilling, hiring and reassignments are a part of big companies like Capgemini. The tech giant houses more than 1 lakh employees in India, which is more than half its strength worldwide.
US-listed IT company Cognizant is also likely to cut 10,000 jobs to cut costs. This is another round of layoffs after the company fired its middle-level executives in May to slash its costs and restore growth.
Cognizant under the leadership of its new CEO Brian Humphries is undertaking an extensive restructuring process, which is intended towards pushing growth and bringing down the costs, the Economic Times reported.
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