Seems, Infosys(NYSE) has returned to a practice that it adopted during the peak of the global economic crisis in 2008 and 2009. According to a latest update, Infosys has begun sacking employees.
It is reportedly said that the renewed lack of tolerance for poor performance would result affect nearly 5,000 employees at Infosys.
Market watchers added, the latest news of the lay-off is indicating the Infosys is facing pressure to curtail costs while pivoting towards a more aggressive sales strategy. Besides the latest lay-off, Infosys, which is facing stiff competition in the industry, had also halted salary hikes few months ago. It blamed bad market conditions and insufficient visibility into near-term growth at that time.
Market watchers further added, rupee volatility, economic slowdown and lack of new projects are pushing IT companies towards cost cutting.
However, it is difficult to say anything confirmed for now as Infosys has not said anything officially. Stay tuned to get more updates on this.
