Infosys Lets Go of 240 Entry-Level Staff After Assessment Failures, Offers Upskilling Support

Software major Infosys has terminated 240 entry-level employees after they failed to meet internal assessment standards, according to company emails dated April 18, reviewed by Moneycontrol.

Second Wave of Layoffs in 2025

This development follows a similar move in February when Infosys let go of more than 300 trainees under comparable circumstances. Both groups have been offered free upskilling programs facilitated by NIIT and UpGrad.

These terminations come amid a slow demand environment, with Infosys projecting revenue growth of only 0 to 3 percent for the current financial year.

This subdued outlook reflects ongoing uncertainties in the company’s key markets.

Internal Email Details the Assessment Failure

The termination emails stated:
“You have not met the qualifying criteria in the ‘Generic foundation training program’ despite the additional preparation time, doubt-clearing sessions, several mock assessments and three attempts. As a result, you will not be able to continue your journey for the apprenticeship program.”

Infosys assured the affected employees of career support:
“As you explore opportunities outside of Infosys, we have planned professional outplacement services to help you on that journey.

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.

On successful completion of the training, you may also apply to available opportunities in Infosys BPM Limited. However, if you wish to continue honing your IT skills, you also have an option to choose an Infosys sponsored external training program on Information Technology fundamentals to further support your IT career journey.”

The company added that the terminated trainees would receive one month’s pay, accommodation, and travel allowance from the training centre in Mysuru to either Bengaluru or their hometown.

Upskilling Support for Affected Trainees

Infosys has collaborated with UpGrad for BPM training and NIIT for IT training. These free training offers are available to both the newly impacted trainees and those who were let go in February.

On April 17, around 730 trainees who had joined the company on October 21, 2024, appeared for their third and final assessment attempt. According to sources, the results for the next group are expected next week.

Previous Terminations and Onboarding Delays

In another instance on March 26, Infosys terminated 30–45 trainees from its Mysuru campus after they failed internal assessments.

These individuals were also given the option to undergo a 12-week training program tailored to potential roles in Infosys Business Process Management (BPM).

Many of these trainees had been waiting for over two and a half years before joining, a delay driven by a broader macroeconomic slowdown that caused clients to suspend IT project investments.

These individuals were hired for positions such as System Engineers (SE) and Digital Specialist Engineers (DSE).

Fresher Hiring Plans Continue Despite Market Uncertainty

Despite the layoffs, Infosys announced on April 17 that it plans to onboard 20,000 freshers during the current fiscal year. Last year, the company had hired over 15,000 freshers.

However, it continues to face challenges in core markets like the US and Europe, where clients remain cautious with technology spending.

The current batch of trainees undergoing assessments had completed their engineering degrees more than two years ago, during the peak of the COVID-19 pandemic, when academic sessions were held virtually. Many of them were hired through online interviews.

Financial Performance Overview

Infosys reported a consolidated net profit of ₹7,033 crore for the March quarter, marking an 11.7 percent decline compared to ₹7,969 crore in the same period last year.

Quarterly revenue stood at ₹40,925 crore, up 7.9 percent from ₹37,923 crore a year ago.

For the entire fiscal year, Infosys posted a marginal 1.8 percent profit increase, reaching ₹26,713 crore, while revenues climbed 6.06 percent to ₹1,62,990 crore.

CEO Salil Parekh described the company’s performance as “robust” and stated that Infosys is well-positioned to meet the evolving needs of its clients.

Counselling and Transition Support

In addition to financial support, Infosys is offering counselling services, travel assistance, and accommodation to affected employees. These benefits will be made available upon signing a “separation and general release agreement.”

According to reports, 45 trainees from a Bengaluru office were also terminated recently for failing internal assessments despite being given three chances.

Many of these individuals were part of the same group that had faced onboarding delays for over 2.5 years.

Affected trainees have claimed they were unaware of negative marking in the assessments, although this claim remains unverified.

HT.com reported that it could not independently verify the authenticity of the internal emails.