This Article is From May 12, 2017

Infosys Defers Pay Hikes, Says No 'Planned Layoffs'. Read Letter To Staff

Infosys chief operating officer Pravin Rao put to rest "any speculation around planned layoffs".However he said that -as has been the case in the past, we will primarily see some performance based exits.-

Infosys Defers Pay Hikes, Says No 'Planned Layoffs'. Read Letter To Staff

Infosys COO Pravin Rao, in a letter to staff, sought to put to rest speculation around "planned layoffs"

Highlights

  • Pay review to be effective July 1 for employees ranked JL5 and below
  • For remaining employees, pay review will happen in subsequent quarters
  • Infosys put to rest any speculation around planned layoffs
Infosys, India's second largest software services company, has delayed salary hikes and also sought to put to rest speculation around "planned layoffs". In an email to employees, chief operating officer Pravin Rao said, "This year, the Compensation Review will be effective July 1, 2017 for JL5 and below in India. For the remaining employees, we will roll out the compensation review in subsequent quarters." Mr Rao also "put to rest any speculation around planned layoffs". However he said that "as has been the case in the past, we will primarily see some performance based exits."

Here is what Infosys COO Pravin Rao said in his letter to employees:

Dear Infoscion,

As you are aware, the last financial year was a challenging one; our Q4 results were below expectations, the industry is going through challenging times and our core services business continues to be commoditized. In addition, geo-political events are further disrupting the traditional business model. We have plans in place to navigate these challenges while balancing the priorities of various stakeholders. We are working hard to get our momentum back, and I'm confident that with your support, this will be possible sooner than later.

I also wanted to update you on a few areas on which we have been receiving feedback and queries:

Compensation Revision: This year, the Compensation Review will be effective July 1, 2017 for JL5 and below in India. For the remaining employees, we will roll out the compensation review in subsequent quarters.

Performance Management and Variable Pay: As you are aware, over the last few years, we have strengthened our Performance Management process with increased focus on individual performance and differentiation. Our compensation review exercise as well as our variable payouts will be guided by the philosophy of rewarding high performance. I would like to put to rest any speculation around planned layoffs. As has been the case in the past, we will primarily see some performance based exits. Regarding variable pay, we will consistently strive to deliver higher payout and ensure predictability at junior job levels. In FY17, we gave 80% average variable pay to 78% of employees.

Cost control measures: We are always looking for opportunities to optimize costs and reinvest in our business. Earlier this quarter we had embarked on a few cost optimization measures. Based on feedback received from many of you, we have decided to reconsider and discontinue a few initiatives that were causing discomfort. Additionally, we welcome other suggestions for optimization that you have shared and we will review the same.

Folks, I hope that this update addresses some of your concerns, and we really want to keep the channels of communication open. You can write to Infosys Communications with your suggestions and feedback.
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