Appraisals of Infosys’ senior employees delayed by July; no layoffs on cards

Infosys said it has deferred increments by July for senior employees. The appraisals can even be pushed further.

In a letter to employees, Infosys COO UB Pravin Rao played down any fears of job cuts and said for employees at job level 5 and below, which means those having below eight years of experience, the compensation review will be effective from July.

"I would like to put to rest any speculation around planned layoffs. As has been the case in the past, we will primarily see some performance-based exits,” Rao said.

Rao also addressed concerns over variable component of the salary, saying Infosys will try and ensure predictability at junior levels. He said the company had started cost-optimisation measures and some were discontinued following employee feedback that they were causing discomfort.

"They have delayed the salary hike. They are also raising the cost of parking in the campus and facilities fees. So even if you get a hike, you will end up giving most of it back to the company,” an employee with Infosys told ET.

Meanwhile, Tech Mahindra has also delayed salary increases for employees with more than six years of experience.

Presently, apart from delayed increments, IT professionals are also worried over speculations regarding huge job cuts.

"The onset of automation and productivity means that if your performance is not good enough, then you are not really able to deliver values the company needs. The appraisals of the competencies of the people will certainly have to be rigorous in keeping with changing global standards,” R Chandrasekhar, president of Nasscom, told ET in a recent interview.