India’s second-largest IT firm, Infosys, has terminated the contracts of 240 entry-level trainees after they failed to clear internal training assessments, according to emails reviewed by Bussiness. The move comes as the company navigates slow growth and tight market conditions in the tech sector.
Despite the layoffs, Infosys has extended a comprehensive support plan to the impacted trainees. The package includes one month’s salary, a travel allowance to reach training centers in Mysuru or return to their hometowns, free accommodation, and access to external upskilling programs. The training will be offered in collaboration with partners NIIT and UpGrad.
In its email, Infosys explained the reason behind the termination, stating that the trainees did not meet the qualifying criteria despite several opportunities. These included extra preparation time, doubt-clearing sessions, mock assessments, and three final attempts in the ‘Generic Foundation Training Program’. As a result, they were found ineligible to continue toward the company’s apprenticeship program.
Infosys has given trainees the option to choose between BPM- training or continued IT skill development. The BPM training could lead to future roles within Infosys BPM Limited, while the IT track allows for strengthening fundamental technical knowledge. The company also mentioned it will provide outplacement support to help the affected individuals find alternative career paths.
The layoffs reflect Infosys’ cautious approach as it projects modest revenue growth between 0 and 3 percent for FY26. The move comes even as Infosys CFO Jayesh Sanghrajka confirmed plans to hire more than 20,000 freshers this fiscal year, suggesting a continued emphasis on building a skilled and adaptable workforce.
As of now, Infosys has not issued an official public statement. Updates are expected if more clarity is provided.