Mass Termination at Infosys: A Harsh Reality of IT Layoffs

The IT industry has long been a beacon of aspiration for fresh graduates, promising stability and career growth. However, the recent mass termination of nearly 400 trainees at Infosys’ Mysuru campus has raised serious concerns about the ethical handling of layoffs. These trainees, onboarded after a prolonged wait of over two years, were dismissed on February 7 after failing internal assessments. The abrupt nature of the layoffs and the lack of transitional support have sparked outrage, with many calling it an inhumane approach to workforce management. Background: A History of IT Layoffs Mass layoffs in the IT sector are not a new phenomenon. During the 2008 financial crisis, major firms like IBM and Microsoft laid off thousands of employees as part of cost-cutting measures. More recently, the post-pandemic economic downturn has led to large-scale layoffs at tech giants such as Google, Amazon, and Meta. In 2023 alone, more than 200,000 tech workers globally lost their jobs due to restructuring efforts. In India, IT companies have faced scrutiny for their handling of terminations. Wipro, in early 2023, laid off hundreds of freshers over poor performance in internal assessments. Similarly, Cognizant and TCS have let go of employees under performance improvement plans, often criticized for being arbitrary and lacking transparency. Infosys Layoffs: The Trainees’ Ordeal At Infosys, the trainees who were dismissed claim they were blindsided by the termination process. They were called in groups of 50, escorted by security personnel, and made to sign mutual separation letters before being asked to leave the premises the same day. Many found themselves stranded, struggling to arrange transportation home. A female trainee from Madhya Pradesh, for instance, was denied her request to stay overnight due to transportation issues. Another trainee noted that the strict examination criteria were deliberately designed to fail candidates. “The tests were exceptionally tough this year. Many trainees fainted out of stress, and now their future is uncertain,” said one of the affected employees. The move has drawn the attention of IT employee unions. The Nascent Information Technology Employees Senate (NITES) has claimed that the actual number of terminated employees is much higher than the reported 400 and has urged government intervention. Infosys’ Justification Infosys, in its statement, defended its actions, stating that its hiring process is rigorous and that trainees are given three chances to clear internal assessments. The company emphasized that this policy has been in place for over two decades and is clearly outlined in employee contracts. However, former employees argue that the difficulty level of the assessments has increased significantly, making it unfair for freshers who had already endured a long waiting period before joining the company. “It feels like we were set up to fail,” said one former trainee. Ethical Concerns in Workforce Management The manner in which the terminations were conducted has ignited debates about corporate ethics and employee welfare. While performance-based layoffs are not uncommon, industry experts suggest that companies should adopt more humane exit strategies. Providing adequate notice periods, career counselling, and reskilling opportunities are some ways organizations can mitigate the negative impact of layoffs. Moreover, the lack of transparency in Infosys’ assessment criteria raises questions about fairness. If companies expect high-quality talent, they should ensure that their evaluation methods are consistent and reasonable. Mass terminations without proper transition support can harm not just the employees but also the company’s reputation and ability to attract future talent. The Infosys layoffs serve as a stark reminder of the volatility in the IT sector and the harsh realities of corporate workforce management. While companies have the right to enforce performance standards, the ethical handling of layoffs remains a pressing issue. As discussions around job security and employee rights gain momentum, companies must reconsider their approach to workforce transitions. Providing fair assessments, offering support systems, and maintaining transparency are crucial steps toward creating a more balanced and humane corporate ecosystem. For the young aspirants entering the IT industry, this incident serves as a wake-up call to be prepared for uncertainties. The need for continuous skill development and adaptability has never been more critical in an industry where change is the only constant.   (With inputs from agencies)