RBS project scrap to affect 3,000 jobs, says Infosys

Infosys has said that Royal Bank of Scotland's decision to cancel a separate bank project in the UK will impact about 3,000 jobs. Even though the jobs will not be cut, the employees will have to be reallocated to other projects.

It was last week that RBS announced its decision to not go on with its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G). Infosys was a key technology partner in the project.

"Infosys has been a W&G program technology partner for Consulting, Application Delivery and Testing services, and subsequent to this decision, will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months," said a statement from Infosys.

The statement added that RBS is a key relationship for Infosys, which is why the company is looking forward to further strengthening their strategic partnership and working with them across other strategic and transformation programmes.

As per market analysts, the deal cancellation would have an impact of around $40 million, which would further downgrade the IT giant’s revenue guidance for FY 2016-17.

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