The Recent Infosys Layoffs: What Exactly Happened?

In a shocking development, Infosys, one of India’s largest IT services companies, has reportedly terminated around 700 trainees who were onboarded in October 2024. The company cited their inability to clear internal assessments as the primary reason for the layoffs. While Infosys maintains that the separation was based on performance criteria and involved around 350 individuals, employee bodies argue that the actual number is nearly double and plan to escalate the matter to the labour ministry.

This decision comes at a time when the IT job market is already facing instability, raising serious concerns about employment trends, job security, and corporate ethics in handling layoffs.

The Human Impact: Beyond Just Numbers

1. The Emotional and Financial Toll on Employees

For fresh graduates and early-stage professionals, landing a job at Infosys is a dream come true—only to have it shattered within months. Many of the affected employees relocated to different cities, took loans, and committed to expenses based on their employment. Losing a job so suddenly brings not just financial instability but emotional distress.

Some employees have taken to LinkedIn to share their plight, calling the move “unfair” and questioning the assessment process. The lack of a proper warning system or upskilling opportunities before termination has left many feeling helpless.

2. Early-Stage Professionals and the Job Market

With big IT firms slowing down hiring and mass layoffs occurring in multiple companies, finding another job is not going to be easy. The sudden release of 700 Infosys trainees into the job market increases competition for fresh graduates, making it even harder for entry-level professionals to secure roles.

Moreover, industry experts predict a shift in hiring strategies, with companies preferring contract workers over permanent employees to reduce long-term liabilities. This could lead to more job insecurity across the IT sector.

Other Companies That Have Made Similar Cuts

The Infosys layoffs are not an isolated case. Several major corporations have conducted abrupt job cuts in recent years:

• Better.com: In December 2021, CEO Vishal Garg infamously laid off 900 employees via a Zoom call. The insensitive approach led to massive backlash. More layoffs followed in 2022, affecting 3,000 more employees.
• Meta (Facebook’s Parent Company): In February 2025, Meta initiated layoffs impacting 4,000 employees worldwide, citing a restructuring to focus on AI-driven projects.
• Sonos: The audio tech company laid off 200 employees in early 2025, following revenue losses and strategic shifts.

The Impact on Infosys’ Reputation and Employer Brand

Infosys has long been regarded as an employee-friendly IT company, often praised for its structured training programs and ethical business conduct. However, mass layoffs—especially of trainees who are just beginning their careers—can severely damage its reputation.

How Layoffs Hurt Employer Branding:

• Loss of Trust: Existing employees may fear future layoffs, leading to decreased morale and productivity.
• Difficulty in Hiring: Potential employees might hesitate to join, questioning job security at Infosys.
• Negative Publicity: Infosys has already been in the news for firing freshers in 2023, and this latest incident only worsens its public image.

A study from Western Michigan University found that mass layoffs negatively impact corporate reputation and investor confidence, making it harder for companies to bounce back.

Lessons for Companies: How to Handle Layoffs Ethically

While layoffs are sometimes necessary, the manner in which they are conducted makes all the difference. Here’s what companies can do instead:

1. Invest in Reskilling Programs

Instead of firing trainees who fail assessments, Infosys could have provided additional training, mentorship, or alternative roles to help them improve.

2. Implement Gradual Performance Management

Rather than abrupt terminations, a progressive performance review system (with warnings, counseling, and guidance) can help employees adapt and succeed.

3. Offer Support During Transitions

Companies like Google and Microsoft provide severance packages, job placement services, and extended health benefits for laid-off employees. Such initiatives soften the impact of job losses.

Final Thoughts: A Wake-Up Call for the IT Industry

The Infosys layoffs highlight a growing concern in the tech sector—companies need to rethink how they handle hiring, training, and employee retention. The industry must move towards sustainable workforce management rather than treating employees as disposable assets.

For fresh graduates and job seekers, this is a reminder that continuous learning, adaptability, and networking are crucial in today’s volatile job market.

Disclaimer

The information in this article is based on publicly available reports and expert analysis as of February 13, 2025. The situation may evolve, and readers are encouraged to follow official statements from Infosys and trusted news sources for updates.