In what marks a significant development within India’s IT services sector, Infosys has terminated an additional 200 trainees at its Mysuru campus following repeated failures in internal assessments. This brings the total number of fresher exits at the tech giant to around 800 since February 2025. The decisions come amid a complex confluence of subdued global demand, stringent assessment frameworks, and a broader recalibration of talent strategy.
Performance Pressure Mounts: Inside Infosys’ Rigorous Assessment Framework
The latest wave of exits stems from Infosys’ strict internal training and assessment regimen, which all new trainees must clear to qualify for long-term roles within the organization. According to company emails reviewed by Moneycontrol dated April 29, trainees who failed to meet the “Generic Foundation Training Program” standards after three attempts were informed they would not continue in the apprenticeship programme. The communications emphasized that affected trainees had been provided with multiple opportunities, including additional preparation time, doubt-clearing sessions, and mock assessments. However, those who still failed to meet the benchmark were asked to leave.
This is the fourth such round of exits initiated by the company. The first occurred in February, with over 300 trainees dismissed, followed by 30–35 in March, and another 240 on April 18. With the addition of around 200 more on April 29, the total exits now stand at nearly 800.
Exit or Evolve: Upskilling Paths for Affected Trainees
Infosys, aware of the career implications for affected individuals, has offered an alternative pathway. Around 250 of those who failed assessments have enrolled in upskilling programmes offered by NIIT and UpGrad, companies that specialize in business process management (BPM) and IT training. These 12-week courses are designed to equip trainees with skills more suitable for roles in Infosys BPM, a separate vertical that focuses on customer service, data operations, and backend support.
The company is sponsoring the cost of these programmes entirely and has clarified that this opportunity is voluntary. For those not interested in the BPM route, Infosys is providing a one-month ex-gratia payment, an official relieving letter, travel arrangements from Mysuru to Bangalore, and even temporary accommodation at the company’s Employee Care Centre.
About 150 affected individuals have also signed up for outplacement services to seek opportunities outside the company, a move seen as a way for Infosys to cushion the blow while preserving its image as a responsible employer.
Legal Lens: Why These Exits Don’t Qualify as Layoffs
Despite public outcry and media reports labeling these terminations as mass layoffs, the Karnataka Labour Department has clarified that no labour laws have been violated. Following a complaint earlier this year, the department conducted investigations across Infosys’ campuses in Bengaluru and Mysuru. It concluded that the individuals in question were not formal employees but apprentices undergoing a structured training program.
According to the Labour Department, the distinction between a full-time employee and an apprentice is significant. Since the individuals had not yet been absorbed into full-time roles, the company’s actions did not legally constitute layoffs. “They were all only trainees, and some underwent training for three months. A layoff applies only when there is regular employment. There is no employer-employee relationship at all,” said a department official.
This clean chit comes in the wake of scrutiny from the Union Labour Ministry, which had asked the Karnataka authorities to examine the matter and act promptly.
Navigating Headwinds of Economic Slowdown
The larger context of these terminations cannot be ignored. Infosys, like other IT majors, is navigating a prolonged period of low demand and project deferrals in its key global markets. The company has forecast minimal revenue growth—between 0 to 3 percent—for the current fiscal year, underlining the need for cautious cost management and prudent workforce planning.
Delays in onboarding freshers over the past 2.5 years are another symptom of the demand-side challenges Infosys is grappling with. In such a tight economic environment, the company appears to be streamlining operations by retaining only those trainees who meet rigorous quality and skill benchmarks.
Industry analysts say the move reflects a broader trend in India’s IT services sector where companies are becoming increasingly selective with fresher absorption, and where performance-based filtering is expected to become the norm rather than the exception.
Infosys has defended its actions as consistent with longstanding internal policies that require freshers to pass key assessments before being officially inducted into projects. While the optics of the mass exits may appear harsh, the company’s offer of upskilling support, outplacement services, and fair exit provisions aims to strike a balance between business exigencies and social responsibility.
