Infosys Layoffs: Firm Faces Centre’s Scrutiny After NITES Claims, Company Denies Allegations

Company officials had previously stated that removing underperforming trainees was essential to maintain high quality within the organisation

On February 7, Infosys laid off around 350-400 trainees at its Mysuru campus after they failed evaluation tests on three consecutive attempts

Source : Glassdoor

The Union Ministry of Labour and Employment has sent a second letter to the Karnataka Labour Commissioner, requesting intervention in the layoffs of trainees at Infosys' Mysuru campus. “You are requested to look into the matter and take necessary action, keeping both the applicant and this office informed,” according to the letter dated February 25, accessed by Moneycontrol. 

The applicants include the Pune-based IT employee union Nascent Information Technology Employees Senate (NITES) and more than 100 former Infosys trainees who were terminated. The Union Ministry of Labour has also instructed the Karnataka Labour Commissioner to provide a detailed report on the actions taken in this matter.

Previously, a Moneycontrol report suggested that officials from Karnataka's Labour Department visited Infosys' campuses in Bengaluru and Mysuru to assess the situation following reports of trainee layoffs. This visit followed an email from the Union Ministry of Labour, instructing the Karnataka Labour Commissioner and Labour Secretary to investigate the matter and take immediate action to resolve the issue.

Company officials had previously stated that removing underperforming trainees was essential to maintain high quality within the organisation. They added that support such as transport, counselling, and accommodation was provided to the affected trainees.

On February 7, Infosys laid off around 350-400 trainees at its Mysuru campus after they failed evaluation tests on three consecutive attempts. This number represents roughly half of the trainees hired in October 2024. The trainees had been onboarded after a two-and-a-half-year wait, caused by a macroeconomic slowdown that led to IT clients halting spending on projects.

The letter issued by the Office of the Chief Labour Commissioner (C) follows multiple complaints filed with the Prime Minister’s Office (PMO).

Infosys Denies The Claim

In a statement issued on February 26, 2025, Infosys said, “Infosys takes great pride in the quality of its employees and provides one of the finest training programs that has been globally recognized as a leading foundation program in the industry. Every trainee joins with the clear understanding that performance evaluations are an integral part of their development and progress."

"While we understand the disappointment of individuals who have not been able to clear the assessment, it is important to understand facts surrounding this situation," the statement continued.

Infosys further explained, "Each trainee that joins Infosys, fills an Apprenticeship Registration Form accepting their apprenticeship with Infosys, where the training cost is borne entirely by Infosys. Our testing processes are articulated in the evaluation policy document and also communicated proactively to all trainees. Also, as part of the evaluation process, negative marking is across all the three attempts where Multiple-Choice Questions formats are followed." 

"This is part of the evaluation policy document and also communicated proactively at the time of induction of our trainees. Furthermore, all eligible trainees (over 98 per cent) have received their relieving letter upon separation, along with outplacement services, severance pay, counselling among other measures, as shared earlier", the company added.