Infosys’s senior management will undergo a restructuring with Infosys looking to offload managers who are working at the senior level in the company. This accounts for around 30,000 employees. It has been reported that this is being done to recover from the impact of coronavirus. The list of job profiles affected due to this are delivery managers, associate vice presidents, senior vice presidents, and more
A recent report from TOI has stated that the senior management officials who are working at levels 6,7,8 will come under this new plan. Infosys plans to remove the headcount by 15% from JL7 and above. This plan will affect nearly 13,000 officials
For Infosys and other IT giants, the employee costs, wages, campus placement drives will contribute to more than half of the operational costs of an employee. Also, this economic slowdown which has been caused due to the coronavirus has led to the termination of many projects the company has taken. This has also led to a reduction in profits for the company.
The company also said that neither there are no plans to downsize the number of employees nor do they have a predefined percentage of exits in the company. Also, it was told that as Infosys is a performance-driven company, some involuntary action needs to be taken to reduce the costs.
The current hierarchy in the company is that delivery managers report to senior delivery managers, who in turn report to the delivery head. The overall delivery team again reports to the service head. This had led to an increase in the number of managers at the senior level.
Hence the company is looking to trim down the number of managers. The company is also expecting that this will accelerate the decision-making process and reduce the operational costs per employee. The salaries at the senior level are very high with most of the senior-level managers earn Rs.35-40 lakh. The VP, SVP officials earn higher than this.
Also, the company had said that the annual remuneration for the executive employees at the senior level has been increased by 25% in FY20. In the latest earnings call, the company has announced that all the hiring, promotions, appraisals have been frozen until further notice and the company calls this a ‘no-regret’ move