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What the Infosys debacle tells us about the need for a dignified layoff process

The first week of February saw two interesting, though ironic, developments in corporate India: IT giant Infosys terminated 400 fresh recruits for failing their probation and Larsen and Toubro (L&T) chairman SN Subrahmanyan expressed discontent with high attrition and inability to attract talent. Less than a month ago, Infosys founder NR Narayana Murthy and Subrahmanyan had advocated for 70 and 90 hour work weeks respectively. What the two developments highlight is an urgent need to relook at talent lifecycle management. Perhaps Indian businesses can look at Disney movies and the hospitality business for inspiration.
Think about the last great Disney movie you watched. It likely started with excitement, drawing you into its world, making you care about the characters. Then, somewhere in the middle, the story might have turned slow, predictable, even a bit boring. But just as you expected disappointment, a twist in the tale revived your interest, leading to a thrilling climax and a memorable ending.
Now, think about your experience at a great hotel. You remember the warm welcome at check-in — the friendly staff, the seamless process, and the refreshing drink handed to you. Your actual stay might have been standard, but if the check-out process was smooth, with a courteous goodbye, and maybe even a small farewell gift, your overall impression remains positive.

What do Disney movies and great hotel stays have in common? An impressive beginning and end.
Companies often forget that the same logic applies to employee experience, especially in hiring, retention, and layoffs. How organisations bring in talent and how they part ways with employees define their long-term reputation. Yet, many companies fumble both, leading to poor retention, disengagement, and in some cases, public backlash.
The grand opening: Hiring and onboarding
The hiring process is a company’s trailer — it sets expectations, generates excitement, and convinces candidates that this is the right place to grow their careers. Top firms invest millions in talent acquisition, promising a world of growth, flexibility, and purpose. But once the offer letter is signed, does the experience match the expectation?

In October 2024, Infosys onboarded freshers in large numbers – after a gruelling wait of 2.5 years – fuelling their dreams of working at a prestigious IT firm. Yet, months later, 400 freshers were abruptly laid off due to ‘poor performance,’ without investing in adequate support. After all, one wouldn’t want half the film to be missing when they buy a ticket to a Disney movie after watching its trailer.
The middle act: Retention
A compelling start can only take you so far. The real challenge lies in sustaining employee engagement in the long run. Unfortunately, many organisations fail to make this middle act interesting, leading to disillusionment and high attrition.

L&T chairman recently lamented that India faces a talent shortage, while simultaneously endorsing 90-hour work weeks. The contradiction is glaring — if employees are leaving in droves, is the solution really to push the remaining ones to exhaustion?

Retention isn’t just about salary hikes or long hours — it’s about creating an environment where employees feel valued, engaged, and able to grow. Investments in career development, mentorship, and work-life balance, ensure that employees stay productive without burning out.
The grand finale: Layoff experience
Layoffs are the ultimate test of a company’s values. Employees should be able to leave with respect and dignity. When done wrong, the damage can be irreversible. Infosys’ recent handling of layoffs is a textbook case of what not to do. Firing freshers with little notice and no structured transition support damages not only employee-morale, but also future hiring prospects. If employees believe they can be discarded without consideration, why would top talent choose to work there?

Contrast this with companies that prioritise humane layoffs. Thoughtful severance packages, outplacement services, and clear communication help maintain goodwill, ensuring that even departing employees become brand ambassadors.
Why mastering the start & end matters for business growth
A strong employer brand isn’t built through advertising alone, it is shaped by real employee experiences. When companies fumble hiring, retention, and layoffs, they erode trust not just among employees, but also with customers, investors, and future hires. Companies that get it right see tangible benefits:

Stronger retention and lower hiring costs: Engaged employees are less likely to leave, reducing the constant churn of recruitment.

Enhanced brand reputation: Former employees who leave on good terms often become long-term ambassadors, leading to better employer branding.

Higher productivity and morale: Employees who feel valued work harder and contribute more meaningfully.

Make the beginning and end count
Companies spend millions crafting external brand narratives, but their most powerful brand asset is their people. Whether hiring, retaining, or letting go of employees, it is the first and last impression that sticks.

Retention isn’t about extracting maximum work from employees — it’s about keeping them engaged throughout their journey. And when parting ways, companies must choose whether they want ex-employees to be brand advocates or brand detractors.

Just like a great Disney movie or a five-star hotel experience, the key is to ensure that employees walk away feeling valued, no matter whether they stay for a short tenure or a long career. After all, the best employers understand that people will always remember how you made them feel.

Archana Venkat helps organisations enhance their market position, client base, and service offerings, leading to overall growth and profitability. She is a former CXO with sales, marketing and operations experience.

Views expressed are the author’s own.

Source-https://www.thenewsminute.com/opinion/what-the-infosys-debacle-tells-us-about-the-need-for-a-dignified-layoff-process

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