Wednesday, October 22, 2025
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Infosys Mass Layoffs Spark Controversy; Centre Steps In

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Infosys, one of India’s leading IT services companies, has recently come under scrutiny for mass layoffs at its Mysuru campus.

The Centre has directed Karnataka’s state labour department to take urgent action following complaints from an IT employees’ association.

This move has sparked a debate about the treatment of employees and the broader implications for the IT industry.

NITES warned that Infosys’s actions could set a dangerous precedent for the IT industry, potentially encouraging other companies to adopt similar cost-cutting measures under the guise of performance assessments.

The association demanded an immediate investigation and the reinstatement of terminated employees with compensation.

Background, Complaints and Centre’s Directive

The controversy began when Infosys terminated nearly 400 trainees at its Mysuru campus after they failed to clear internal assessments three times.

Nascent Information Technology Employees Senate (NITES), an independent IT employee union, filed a formal complaint with the Union Labour Ministry.

They labeled the terminations as “illegal, unethical, and in violation of labour laws”.

NITES claimed that the actual number of affected employees was closer to 700.

The Ministry of Labour and Employment instructed Karnataka’s state labour department to investigate the matter in response to the complaints.

They asked the department to report back to both the association and the Labour Ministry.

The directive emphasized the need for urgent and necessary steps to address the dispute.

Infosys’ Defense and Employee Reactions

Infosys defended the terminations, stating that the trainees had resigned through “mutual separation” after failing the internal assessments.

The company argued that the process, which has been in place for over two decades, ensures a high quality of talent for its clients.

Infosys also claimed that the trainees were given three attempts to clear the assessments and that the criteria were clearly communicated in their contracts.

Many of the affected trainees expressed frustration and claimed that the assessments were overly difficult and the time allotted was insufficient to cover the material.

Some trainees also mentioned that they were asked to self-study certain topics, further complicating their ability to pass.

The sudden terminations left many employees stranded without accommodation, adding to their distress.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus