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Introduction: A Wake-Up Call for Corporate Trainees
In a move that’s raising eyebrows across India’s tech sector, Infosys has dismissed 240 entry-level employees after they failed to clear internal assessments, despite multiple opportunities and extended support. The wave of layoffs highlights a growing trend among top IT firms to enforce stricter performance metrics during training programs. While the action might appear harsh, Infosys is attempting to soften the blow by offering several career transition options—including free upskilling courses, counseling, and travel allowances. As the demand for high-quality tech talent grows, Infosys’ approach reflects a broader shift in how companies are balancing support with performance-based standards.
the Original Report
Infosys, one of India’s largest IT companies, has terminated 240 entry-level employees for failing to meet performance benchmarks in the company’s ‘Generic Foundation Training Program.’ These employees were mostly trainees hired as System Engineers and Digital Specialist Engineers. Despite being offered extra preparation time, doubt-clearing sessions, mock assessments, and three chances to pass, they did not meet the internal standards.
This development mirrors an earlier incident in February 2025, where over 300 trainees were also let go due to similar failures in assessment tests.
In a company-wide email dated April 18, Infosys communicated its decision, outlining both the reason for termination and available support. The email expressed that while the results were disappointing, the company was committed to aiding the impacted individuals in transitioning to other career paths.
Support measures include:
One month’s salary (Ex-gratia)
Professional outplacement services
Relieving letter
Choice between two free training programs:
12-week BPM industry training
24-week IT fundamentals course
Travel allowance from Mysore to Bengaluru or hometown
Accommodation at the Infosys Employee Care Centre
Counseling services
These offerings also extend to employees who were laid off in the earlier February round.
Infosys has partnered with platforms like NIIT and UpGrad to deliver the upskilling programs. On successful completion of training, the affected individuals may even be considered for roles within Infosys BPM Limited.
What Undercode Say: A Strategic Reset in Indian IT Hiring
Infosys’ decision to terminate 240 trainees despite providing multiple support avenues is a significant statement in India’s evolving tech landscape. It reflects the tightening standards of employee performance in the training phase—once considered a grace period in Indian IT firms.
From a business perspective, this move serves multiple strategic goals:
- Filtering for Agility: Infosys is aiming to build a workforce that’s not just academically qualified but agile and industry-ready from day one. The failure to clear foundational assessments, even with extended support, suggests a mismatch between hiring expectations and actual capabilities.
Operational Efficiency: Maintaining underperforming trainees costs money—not just in salary but also in infrastructure and training resources. Trimming this fat early helps Infosys streamline operational costs in a post-pandemic, competitive environment.
Brand Image Maintenance: Infosys is balancing this tough call with compassionate optics. By offering travel, accommodation, counseling, and free education through credible platforms, the company is clearly mindful of its brand perception as a responsible employer.
Upskilling as Reputation Buffer: The partnership with NIIT and UpGrad is strategic. It sends a strong message that failure doesn’t mean the end. In fact, Infosys is indirectly nurturing the broader tech ecosystem by ensuring that those who didn’t make the cut still have a chance to succeed elsewhere.
Talent Recycling Loop: The offer to reapply to Infosys BPM Limited after training creates a recycling funnel. Even if a candidate isn’t a fit for a technical role, they might thrive in BPM services—adding value to the Infosys ecosystem in another capacity.
Policy Blueprint for Other Firms: This model of “fail but support” could inspire other tech giants. The combination of rigorous assessment, structured exit plans, and career support may become the new norm in Indian IT.
However, this also raises several concerns:
Recruitment Quality: If hundreds are failing foundational training, is there a flaw in the hiring process itself?
Mental Health Impact: While counseling is offered, the stigma of termination at such an early career stage can be a lasting psychological burden.
Unrealistic Expectations?: Some argue that the pressure to perform perfectly from day one isn’t aligned with the traditional Indian educational system, which rarely simulates real-world challenges.
In summary, Infosys is redefining what corporate responsibility means during layoffs—fusing performance rigor with empathetic exit strategies. Whether this approach boosts long-term employer trust or fosters fear-driven performance remains to be seen.
🔍 Fact Checker Results
✅ Verified: Infosys did fire 240 trainees due to failure in internal assessments.
✅ Verified: Support measures like training, accommodation, and salary were offered.
✅ Verified: A similar wave of layoffs occurred in February 2025, involving over 300 trainees.
📊 Prediction
As more IT companies adopt automation, AI-driven training modules, and real-time assessment tracking, early-stage attrition is likely to increase across the sector. Infosys may serve as a template case for other tech firms, especially during mass hiring waves. We can expect Wipro, TCS, and even global firms like Accenture to replicate similar dual-layer models—strict assessments coupled with career bridges like upskilling and reentry via alternate departments. Over time, this may redefine job security for freshers in the Indian IT industry—you’re either upskilled or out.
References:
Reported By: timesofindia.indiatimes.com
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