Infosys has terminated 240 entry-level employees who failed to clear internal assessments, according to emails sent by the company on April 18, Moneycontrol reported. This marks the second round of performance-related layoffs in recent months, following the exit of over 300 trainees in February under similar circumstances.
The impacted employees were part of a training cohort that joined in October 2024 after a prolonged two-and-a-half-year wait, caused by project slowdowns and hiring freezes during the pandemic and subsequent market uncertainty. They were employed as System Engineers (SE) and Digital Specialist Engineers (DSE).
According to an internal communication, the trainees did not meet the qualifying criteria despite being given additional preparation time, many mock assessments (three attempts) and doubt-clearing sessions.
Infosys is offering free professional outplacement services and career transition support to the affected trainees. As part of the assistance package, employees can enrol in Infosys-sponsored external training programs through NIIT for IT upskilling or UpGrad for Business Process Management (BPM) roles. Those who complete the BPM training may reapply for roles at Infosys BPM Limited.
The company also said it would provide one month’s pay, travel allowance, and accommodation support for those departing from its Mysuru training campus to either Bengaluru or their hometowns.
A total of 730 trainees sat for their third and final assessment attempt on April 17. The results for the next batch of trainees attempting their final assessments are expected next week.
Infosys had earlier let go of 30–45 trainees from its Mysuru campus in March following failed assessments, with similar alternative pathways offered. These layoffs come at a time when the company has projected muted revenue growth of 0–3% for the fiscal year, amid demand slowdown in key markets like the US and Europe.
Despite the headwinds, Infosys said it plans to onboard 20,000 freshers in FY26. Last year, the firm added over 15,000 entry-level employees.