Why Karnataka is probing mass layoffs at Infosys

IT services giant Infosys is under the scanner over mass layoffs. The company made headlines recently after sacking hundreds of trainees at its Mysore campus in Karnataka. After a complaint was filed against Infosys by an independent tech employees’ union, the Centre has referred the case to the Karnataka Labour Department.

Last week, Infosys admitted the mass terminations and defended its move citing the company’s policy. However, it has been criticised by various quarters for firing trainees just a few months after their onboarding.

Let’s take a closer look.

Infosys fires trainees

Infosys sacked nearly 400 trainees at its Mysuru campus after they failed to clear internal assessments three times in a row.

As per a Moneycontrol report, groups of about 50 trainees were called in for a discussion with their laptops at 9.30 am on February 7 in a room guarded by security outside and bouncers inside. The young employees had received an email a day earlier, asking them to “maintain confidentiality, hence please do not discuss this, or share this calendar invite with anyone.”

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These freshers were then made to sign “mutual separation” letters.

Trainees who spoke to the financial news outlet on the condition of anonymity alleged the eligibility criteria were very stringent for the 2024 batch. They claimed they were warned by trainers previously that it would be a tough exam that many would not be able to pass.

The evaluation tests aimed at determining the employees’ proficiency and skills in Java programming and database management systems (DBMS).

The report also mentioned that this time the passing criteria were increased from 50 per cent to 65 per cent. The syllabus was also majorly expanded, requiring around 200 hours of study. Whereas, the completion time was significantly cut, making it challenging for trainees to fulfil the required assessment.

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“This is cruelty, it is a big company, trainees fear speaking the truth,” an affected trainee told Moneycontrol.

Another claimed they were asked by an Infosys official to vacate the premises by 6 pm on the day of the termination.

A female trainee from Madhya Pradesh had reportedly pleaded with Infosys officials, “Please let me stay the night. I will leave tomorrow. Where will I go right now?”

“We don’t know. You are no longer part of the company. Vacate the premises by 6 pm,” an Infosys official responded, a trainee told Moneycontrol.

Many of the trainees who were sacked had joined the company after a wait of nearly two and a half years following their graduation. These freshers got offers in 2022 but were onboarded only in October 2024.

Complaint against Infosys

Infosys has landed in hot water over mass layoffs. The Nascent Information Technology Employees Senate (NITES), an independent IT employee union, has accused the company of firing about 700 trainees.

However, the IT firm claims the figure was around 350. Defending the move, Infosys said the trainees, who had undertaken foundational training at the Infosys Mysuru campus for months, resigned after failing to clear evaluation tests thrice.

“At Infosys, we have a rigorous hiring process where all freshers, after undergoing extensive foundational training at our Mysuru campus, are expected to clear internal assessments. All freshers get three attempts to clear the assessment, failing which they will not be able to continue with the organisation, as is also mentioned in their contract. This process has been in existence for over two decades and ensures a high quality of talent availability for our clients,” Infosys said, as reported by PTI.

NITES approached the Union Labour Ministry, seeking action against the IT services giant for alleged “illegal” and “unethical” termination of the young trainees.

“Infosys Ltd has resorted to forcibly terminating recently onboarded campus recruits who had already suffered a delay of two years in their joining after being issued offer letters,” the union stated in its official complaint, as per Deccan Herald (DH).

It also sought a probe, a restraining order against Infosys to stop further terminations, and reinstatement of the fired employees. It also called for penal action against the company for alleged violation of provisions of the Industrial Disputes Act, 1947, and other applicable labour laws.

“In a shocking and unethical move, Infosys has begun forcefully laying off around 700 campus recruits who were onboarded just a few months ago,” Harpreet Singh Saluja, NITES president, said in a statement.

The union claimed Infosys deployed “bouncers and security personnel” during the termination process to “intimidate” employees.

NITES warned that Infosys’ actions set a “dangerous precedent” for the IT industry and could encourage other corporations to engage in similar “exploitative and unlawful practices”, it not addressed.

Centre seeks probe

On Thursday (February 13), the Union Labour Ministry directed the Karnataka Labour Department to take “urgent necessary actions to resolve the dispute” regarding Infosys ’ mass layoffs.

It also asked the state labour ministry to “inform the complainant (NITES) accordingly under intimation to this ministry,” as per the order seen by Economic Times (ET).

According to the report, Karnataka’s Labour Department officials visited Infosys’ campuses in Bengaluru and Mysuru to assess the situation. They met company representatives, discussing hiring and training procedures as well as the business projections leading to the terminations, people aware of the development told ET.

The officials took stock of the situation and will submit an assessment report with the findings in the coming days, they said.

With inputs from agencies