Infosys reportedly plans to reduce the number of managers— the CEO and COO got over 25% salary raise in FY20
Infosysis reportedly downsizing employees at the senior level including delivery managers, associate vice presidents, senior vice presidents and others.
- According to a TOI report, the IT major plans to trim up to 15% of the staff at JL-7 and above — which will directly impact 13,000 employees.
- This is aimed at accelerating the decision making process, thereby reducing the employee costs significantly.
- Meanwhile, the executives at the senior most level in the company — CEO
Salil Parekhand COO Pravin Rao — saw over 25% jump in the annual remuneration in FY20.
According to a TOI report, the senior management at the company functions across job level 6,7 and 8. Of this, the IT major plans to trim up to 15% of the staff at JL-7 and above. This will directly impact 13,000 employees.
For IT giants wages, employee costs and campus placement drives make up for over half of its operational costs. Moreover, the economic slowdown has cost the company termination of several projects, squeezing the profit margin. Infosys’ CEO Salil Parekh said that the company is now reviewing overlaps in the functional hierarchy.
“We have no plans or targets for workforce reduction. Nor do we have any predefined percentage of exits as a result of our half-yearly and yearly performance cycles. However, as a performance-driven organisation, some involuntary attrition is integral to the normal course of business every year at Infosys, Infosys spokesperson told The Times of India.
At present, the company has several managers or heads at the senior level. For instance, there are delivery managers who report to the senior delivery managers. These senior executives then report to the delivery head — and the delivery team then reports to the service head.
So, the idea is to trim the managerial workforce. This is aimed at accelerating the decision making process, thereby reducing the employee costs significantly. At the senior level, the employee salaries at Infosys vary between ₹35 lakh to ₹40 lakh. And for the VP, SVP roles, the remuneration is even higher than that.
Meanwhile, the executives at the senior most level in the company — CEO Salil Parekh and COO Pravin Rao — saw over 25% jump in the annual remuneration in FY20.
In its latest earnings call, the company also said that it has temporarily froze hiring, promotions and appraisals in view of the Coronavirus pandemic, calling it a ‘no regret’ move.
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