Infosys Responds to Forced Layoff Allegations: Narayan Murthy's Company Denies Claims"

Infosys Responds to Allegations Over Trainee Layoffs, Denies Use of Force or Intimidation

New Delhi: In a recent statement, IT services giant Infosys addressed the controversy surrounding the layoffs of trainees at its Mysuru campus, stating that no force or intimidation was used during the terminations, which were related to performance issues. The company further clarified that it was cooperating with the labour department authorities, providing them with a thorough explanation of the circumstances.

In an interview with news agency PTI, Shaji Mathew, the Chief Human Resources Officer at Infosys, acknowledged that the percentage of assessment failures in this batch of trainees was "slightly higher" than usual, but he refuted claims that the tests were intentionally designed to fail.

When asked whether the layoffs could harm Infosys’ brand as it prepares for its FY26 hiring, Mathew emphasized that the company is on track to hire 20,000 freshers in the upcoming fiscal year. He reassured potential candidates that they would receive top-tier corporate training, which should alleviate any concerns.

Mathew also responded to accusations that the company altered testing parameters, assessment criteria, or the syllabus, and used intimidation tactics during the layoffs, which affected over 300 trainees. He explained that Infosys invests significant resources in selecting and training these individuals, stating, "It is in our best interest for these trainees to succeed, as that’s how they can be placed into our projects."

The company, he said, also pays trainees a salary during their training period, and letting anyone go is a loss to both the individual and the company. He clarified that the trainees in question had failed the internal assessments after three attempts, which led to their termination.

Regarding the Labour Ministry’s involvement, Mathew confirmed that the Karnataka state labour department had contacted Infosys and visited the Bengaluru and Mysuru campuses to understand the company’s training process. Mathew noted that the Labour Department had been supportive, and Infosys had fully cooperated, explaining their assessment and training procedures. "There has been no further request from their side," he added.

When asked whether Infosys would consider reinstating the trainees, Mathew said, "There has been no further ask in terms of taking them back."

Earlier this month, Infosys faced backlash after over 300 freshers, who had been onboarded in October 2024 after a two-year wait, were laid off due to failing internal assessments. The IT employee union NITES had called for urgent intervention by the Ministry of Labour and Employment, urging strict action against Infosys.

NITES had alleged that employees were coerced into signing "mutual separation" letters and were subjected to intimidation tactics, including being summoned to meeting rooms. Mathew vehemently denied these claims, insisting that no "bouncers" or forceful methods were used, and stressed that such practices were against the company’s values. "I can’t even imagine us thinking about bringing in 'bouncers' or using intimidation. These are our trainees, and we don’t need such tactics," he said, adding that those who wished to stay on the campus were allowed to do so.

Infosys continues to work closely with the labour authorities, and the situation remains under review.