Job cuts at Infosys and other tech companies, bring these firms in focus

The wave of layoffs in the tech industry continues to make headlines, with Infosys and other major companies downsizing their workforce amid challenging economic conditions and structural shifts. Infosys recently let go of 240 trainees who failed internal assessments, advising them to explore opportunities outside the company. The terminated employees, hired as System Engineers and Digital Specialist Engineers, were unable to meet the qualifying criteria in the 'Generic foundation training program' despite receiving additional preparation time, doubt-clearing sessions, multiple mock assessments, and three testing attempts.
To support affected employees, Infosys is providing a range of transition assistance options. These include one month's pay, accommodation at the Mysore training center, and a travel allowance to either Bengaluru or their hometown. Along with this, the IT company is also offering professional outplacement services.
"As you explore opportunities outside of Infosys, we have planned professional outplacement services to help you on that journey," stated the termination email sent to affected trainees. The email continued, "We also wish to offer you another career pathway, by taking an Infosys sponsored external training to prepare for potential roles in the BPM industry."
According to a report by Economic Times, as layoffs increase, companies are turning to outplacement firms to assist retrenched employees in finding new roles. Providers like Persolkelly Consulting, LHH, Right Management India, and ABC Consultants have reported a 20-40% rise in demand for career transition services. These firms are helping employees navigate the tough job market, which has been further strained by digital transformation and workforce restructuring.
According to Viraj Kocharekar, Country Manager at LHH India, the surge in outplacement demand is driven by factors such as mergers and acquisitions, talent refresh initiatives, and technological advancements. Similarly, Hardeep Singh, President of Right Management India, noted that the current trend mirrors the sub-prime crisis of 2008, with companies restructuring to adapt to macroeconomic conditions and the rise of AI.
The layoffs are not limited to Infosys. Other tech giants, including TCS and Wipro, have also slowed down hiring, reflecting the broader challenges faced by the industry. The demand for outplacement services has extended beyond IT to sectors like pharma, food processing, and shared services, as global business shutdowns and restructuring take a toll.
Experts like Archana Uniyal of Persolkelly Consulting emphasise that the job market remains tough, with many employees worried about finding new opportunities. Companies are increasingly using outplacement services as a way to support laid-off workers, recognising the emotional and professional challenges they face.