In recent weeks, Infosys, one of India’s leading IT services companies, has faced significant scrutiny and criticism following the layoffs of hundreds of trainees at its Mysuru campus.
The layoffs have sparked outrage among employees and labor unions.
This has led to investigations by the Karnataka Labour Department and the Union Ministry of Labour and Employment.
In response, National Association of Software and Service Companies (Nasscom) has come forward to defend the tech industry.
Nasscom emphasized that companies like Infosys follow performance-driven hiring practices and adhere to local laws.
The Layoffs at Infosys
On February 7, 2025, Infosys laid off approximately 350-400 trainees at its Mysuru campus.
The layoffs occurred after the trainees failed evaluation tests on three consecutive attempts.
These trainees had been onboarded after a two-and-a-half-year wait. The delay was caused by a macroeconomic slowdown that led to IT clients halting spending on projects.
The layoffs represent roughly half of the trainees hired in October 2024.
The sudden layoffs have led to widespread dissatisfaction among the affected trainees.
Many of them have filed complaints with the Prime Minister’s Office (PMO) and the Union Ministry of Labour and Employment.
The Pune-based IT employee union, NITES, has also raised concerns about the legality of the terminations.
In response, the Union Ministry of Labour has instructed the Karnataka Labour Commissioner to investigate the matter and provide a detailed report on the actions taken.
Infosys has denied any wrongdoing, asserting that the layoffs were conducted in accordance with the company’s evaluation policy.
The company stated that every trainee joins with the clear understanding of performance evaluations. These evaluations are an integral part of their development and progress.
Infosys also emphasized that support such as transport, counseling, and accommodation was provided to the affected trainees.
The company reiterated that it is committed to maintaining high-quality standards and retaining only the best talent.
Nasscom’s Defense of the Tech Industry
In a statement issued on February 28, 2025, Nasscom defended the tech industry’s hiring practices.
Nasscom stated that companies like Infosys operate on a merit-based system that emphasizes high-tech skills to meet evolving customer demands.
Nasscom highlighted that the global tech industry focuses largely on customers and operates on a performance-driven hiring model.
The association also emphasized that companies adhere to local laws and regulations. This ensures fairness and transparency in their hiring and termination processes.
The Karnataka Labour Department has conducted investigations into the layoffs and found no violations of labor laws.
The department cleared Infosys of any wrongdoing, stating that the company had followed due process in terminating the underperforming trainees.
However, the Union Ministry of Labour and Employment has sent a second letter to the Karnataka Labour Commissioner, requesting further intervention and action.
The ministry has also instructed the commissioner to keep both the applicants and the ministry informed about the progress of the investigation.
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