Second wave of performance-related layoffs follows 320 exits in February; NITES alleges unethical termination under National Apprenticeship Training Scheme
Bengaluru, April 19: Infosys, India’s second-largest IT services firm, has laid off 240 trainees after they failed to meet internal performance benchmarks in the final assessment round of its training program. This is the second round of such layoffs within two months, with 320 trainees having been terminated earlier in February.
The company cited multiple chances given to the affected individuals, including mock assessments, extended preparation time, and doubt-clearing sessions, before taking the decision. The impacted trainees were hired in 2022 and onboarded in October 2024 as part of Infosys’ intake of 15,000 trainees in FY25.
In an email sent to trainees, Infosys stated:
“You have not met the qualifying criteria in the ‘Generic foundation training programme’ despite the additional preparation time… We also wish to offer you another career pathway by taking an Infosys-sponsored external training to prepare for potential roles in the BPM industry.”
To soften the blow, Infosys is offering generic training programs through NIIT and UpGrad—fully sponsored by the company. Trainees from both rounds of layoffs can avail of these programs. The company has also promised one month’s salary, travel allowance, and temporary accommodation.
However, the decision has sparked controversy and legal scrutiny. Nascent Information Technology Employees Senate (NITES), a tech employees’ union, has lodged a second formal complaint with the Ministry of Skill Development and Entrepreneurship. NITES alleges that Infosys coerced trainees—who were hired under the National Apprenticeship Training Scheme (NATS)—into signing “mutual separation” agreements.
“These actions have been carried out without any legal justification, prior notice, or adherence to due process, and in complete defiance of the authority of the Government of India,” said NITES in its statement.
With performance-linked layoffs becoming more common in India’s IT sector amid global headwinds, the debate around ethical employment practices and fair trainee treatment continues to intensify.