JOB LOSS: TOP IT FIRM 'SENDS MANAGERS OUT, GIVES SALARY HIKE TO CEOS AND COOS'! DETAILED REPORT

IT firm Infosys is undergoing a major structural reallocation especially across the senior management in order to deal with the losses incurred due to COVID19 outbreak. Almost 30,000 employees work in the senior management level. Reportedly, the company is downsizing employees including delivery managers, associate vice presidents and others. 

Almost 13,000 employees are likely to be affected by the move. As per media reports, the firm’s Wages, employee costs and campus placement drives make up for half of its operational costs. This, coupled with economic slowdown has led to termination of several projects and squeezing of profit margin.

The decision to cut down on the managerial workforce is aimed at accelerating the decision-making costs and reducing the employee costs significantly. 

“We have no plans or targets for workforce reduction. Nor do we have any predefined percentage of exits as a result of our half- yearly and yearly performance cycles. However, as a performance – driven organization, some involuntary attrition is integral to the normal course of business every year at Infosys, the spokesperson told TOI. 

Meanwhile, the CEO of the company, Salil Parekh’s compensation grew by 27% to $ 6.1 million in 2019-20. His annual compensation rose by 27%.