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Tag: Layoffs

  • Amazon’s Devices Team Faces 100 Job Cuts in Strategic Shift

    One hundred workers in Amazon‘s Devices and Services group have reportedly been let go. According to the corporation, the jobs were a part of its routine business assessment and only made up a small portion of the unit’s total.

    Popular hardware products, including Fire TV devices, Ring security systems, and Echo smart speakers, are developed by the Devices and Services business. As you may remember, Amazon also let go of several workers in 2023 who had roles related to Alexa.

    According to a statement provided to a media outlet, Amazon has made the tough choice to eliminate a few positions as part of its continuous efforts to improve the efficiency of its teams and programmes and to better align with the company’s product roadmap.

    Amazon’s Broad Restructuring Effort

    Reports suggest that several teams within the Devices and Services section have been impacted; however, the precise extent of the layoffs is still unknown. Instead of focusing on a single product line, this implies a comprehensive reorganisation effort.

    The layoffs occur as Amazon continues to deal with a difficult economic climate. Amazon has been concentrating on cost-cutting strategies to increase productivity and profitability, much like many other Internet corporations.

    Several divisions have had staff losses as a result of these actions. A formal announcement outlining the reasons for this specific round of layoffs has not been issued by the corporation.

    Achieving Massive Targets with Limited Resources: New Mantra of Amazon

    Andy Jassy, the CEO of Amazon, informed staff that creating big teams and personal territories is not the way to progress at the firm. Instead, he emphasised that the online shopping giant rewards people who achieve more with fewer resources.

    Jassy made these remarks at a recent all-hands meeting as part of his ongoing efforts to streamline the organisation’s management structure and bureaucracy. The CEO emphasised Amazon’s dedication to functioning as “the world’s largest startup” in spite of its scale.

     A recent attempt to raise the company-wide ratio of individual contributors to managers by 15% is part of this approach. Amazon accomplished this goal by merging teams and transferring some supervisors into individual contributor positions instead of implementing widespread layoffs.

    Additionally, Jassy emphasised the value of meritocracy above bureaucracy in the corporate culture of Amazon. He reported that 375 process changes have already been made as a result of going over a thousand employee emails sent to a specific “No Bureaucracy” alias.

    Layoff has Become a Common Scenario in 2025

    With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025.

    Companies are still laying off employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.

  • Nissan to Slash 11,000 Jobs and Shut 7 Plants in Major Restructuring

    After a turbulent year that left the Japanese automaker struggling to turn itself around, Nissan Motor announced massive fresh cost cutbacks on 13 May, announcing the closure of seven sites and the elimination of 11,000 further positions.

    Nissan nearly lost its profit in the most recent fiscal year after delaying the release of projections for the one that was just beginning. In the 12 months ending in March, operating profit was 69.8 billion yen ($472 million), which was 88% less than the previous year.

    After declining sales in China and the United States, the automaker’s merger negotiations with Honda broke down, and it was recently compelled to replace its CEO.

     Similar to competitors, it is under pressure from U.S. tariffs and faces competition from rapidly expanding Chinese EV manufacturers in Southeast Asian and international markets.

    Difficult Time Ahead for New CEO

    Ivan Espinosa, the company’s new CEO, wants to save about 500 billion yen in overall expenses. However, he has the challenging task of reviving a carmaker whose once-dominant brand value has been diminished.

    The company’s full-year financial figures are a wake-up call, Espinosa said during a news event. The facts are crystal clear. Variable costs for the company are increasing. The brand’s existing revenue is insufficient to cover its fixed costs.

    With the further layoffs, Nissan would have reduced its staff to about 20,000 employees overall. The company had previously stated that it would eliminate 9,000 jobs.

    It will reduce part complexity by 70% and reduce the number of its production plants from 17 to 10. It did not specify which plants it anticipated closing.

    Analyst Predicted the Current Move

    According to analysts, Nissan is currently experiencing the consequences of its excessive emphasis on sales volume and the implementation of substantial discounts to maintain inventory turnover.

     It is currently rushing to upgrade its aged lineup as a result. However, a quick recovery is doubtful, as the carmaker reported an operational loss of 200 billion yen in the first quarter, according to CFO Jeremie Papin.

    Layoff has Become a Common Scenario in 2025

    With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025.

    Companies are still laying off employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.

    Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing. Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports.

    According to reports, AI-led restructuring and performance-based terminations are part of the corporations’ goals to increase the effectiveness of their personnel.

  • Microsoft to Slash 6,000 Jobs in Largest Workforce Cut Since 2023

    Over 6,000 workers from all levels, teams, and regions will be affected by Microsoft’s announcement that it will lay off 3% of its global workforce. The goal of the layoffs at the Redmond giant, which had 228,000 employees as of late June, is to simplify processes and lower management levels.

    A Microsoft representative informed a media source in a statement that the company is still making the organisational adjustments required to put the business in the best possible position for success in a changing market.

    This is Microsoft’s biggest layoff since the company cut 10,000 positions in 2023. The corporation stated that these layoffs are structural in nature, in contrast to the smaller performance-based cuts that were made in January.

    Middle Management will be Severely Impacted

    Given that the organisation wants to increase each manager’s “span of control” in order to build a more efficient hierarchy, middle management positions may be especially affected by these cuts. According to a media report, Microsoft wants to give engineering talent top priority as it continues to make significant investments in artificial intelligence projects.

     Is engineering skill more important to Microsoft than other positions? The company responded to that query by stating that every role is equally significant. Indeed, it is essential to the advancement of AI.

    A media house was informed by Microsoft’s spokesperson that laid-off workers will continue to be paid for the sixty days following their dismissal. Additionally, it is said that the impacted employees will also qualify for bonuses and incentives.

    New Employment Strategy Adopted by Microsoft

    The reduction in staff coincides with major modifications to Microsoft’s performance management system. Internal records seen by multiple media outlets reveal that the corporation has banned staff fired for poor performance from being hired again for a period of two years.

     Additionally, Microsoft has implemented a “good attrition” statistic to monitor the departure of desired employees. Similar to Amazon’s contentious “unregretted attrition” policy, this strategy indicates Microsoft’s intention to handle underperforming employees more forcefully.

    A “Global Voluntary Separation Agreement” with 16 weeks of severance pay or a performance improvement plan (PIP) with “clear expectations and a timeline for improvement” are the two options available to employees who exhibit poor performance under the new system.

     If they choose the improvement plan instead of the PIP road, they will no longer be eligible for the severance compensation, and they will only have five days to make up their minds.

    The reorganisation of Microsoft is indicative of a larger movement in the computer sector towards more efficient engineering and flatter organisational structures.

    According to reports, the organisation is concentrating on lowering the “PM ratio”—the percentage of managers to engineers—across all teams. Similar tactics, which involved firing the top tier of the organisation, have been used at other major huge companies, including Google and Amazon.

    In addition, Meta is anticipated to let off thousands of workers this year as CEO Mark Zuckerberg advocates for a “year of efficiency”.

    The layoffs come despite Microsoft’s better-than-expected quarterly results in April, when CEO Satya Nadella said the business will restructure how it executes sales after non-AI Azure cloud revenue grew less than anticipated.

  • Hexaware Breaks Silence, Clarifies Stance on Layoff Rumors

    In response to recent worries about layoffs in its business process outsourcing (BPO) segment, Hexaware Technologies clarified that the cuts were not related to artificial intelligence (AI), as some media reports had claimed.

    The corporation clarified that the seasonality of its business activities was the main cause of the workforce adjustments. After a story by a renowned media outlet prompted the clarification, Hexaware responded in greater detail to another media house.

    Hexaware underlined in its statement that although AI may have long-term effects on the BPO sector, AI technology had nothing to do with the Q1CY’25 staff cutbacks. Rather, they were propelled by consistent business oscillations linked to seasonal demand in the BPO industry.

    BPO Business Witnessing Decline

    According to Hexaware’s description of the workforce changes in Q1CY’25, the BPO segment had a 500-person decline, while the IT division saw an increase of about 100 personnel. Variations in client needs and market conditions that affect demand at different times of the year were cited as the cause of this seasonal variability, which is typical in the BPO sector.

    The business recognised the increasing significance of AI and continued to invest in the technology with the goal of improving service delivery and operational efficiency. It emphasised, however, that the present layoffs were a reaction to the cyclical nature of the BPO industry and were not the result of these AI-driven initiatives.

    According to a Hexaware statement, its CEO provided an update on the overall workforce changes during Q1CY’25 in an interview with a media outlet on April 30, 2025. He brought up the possible long-term effects of AI on the BPO industry, but it’s important to make clear that the seasonality of the business—not AI—was the reason for the BPO workforce’s decline.

     This clarification was made in the midst of Hexaware’s impressive financial success. According to the company’s most recent Q1CY’25 earnings report, net profit increased 17.02% to INR 327.20 crore from INR 279.60 crore in the same quarter of 2024. Additionally, sales increased 16.7%, from INR 2748.80 crore in Q1 2024 to INR 3207.90 crore.

    Hexaware’s Overall Performance Remains Robust

    Hexaware’s overall performance is strong even with the BPO division’s employment cutbacks. In order to enhance its service offerings and operational efficiency, the company has made significant strides in its IT operations and is still investing in AI and other cutting-edge technology.

    A crucial component of Hexaware’s operations, the BPO industry is frequently impacted by shifts in customer needs and seasonal demand. The corporation clarified that these layoffs were consistent with industry norms, which dictate that companies adjust their workforces in response to market demands.

    Hexaware emphasised that the company’s strategic usage of AI was focused on increasing business process efficiency over time, even though the long-term role of AI in changing the BPO landscape is still possible.

    The company’s current workforce adjustments were unconnected to AI. Hexaware is still optimistic about its chances for future expansion. The business is well-positioned for future success because of its IT division’s impressive performance and its unwavering focus on creating AI solutions.

    Hexaware wants to remain at the forefront of industry trends as the BPO sector develops and new technical innovations are implemented, guaranteeing its capacity to adjust to the shifting needs of the market.

  • Panasonic to Slash 10000 Jobs, Braces for $900M Restructuring Hit

    In an attempt to restructure the company, Panasonic Holdings announced on May 9 that it will layoff 10,000 employees and anticipate spending 130 billion yen ($896.06 million) this fiscal year. According to a statement, the electronics company plans to lay off employees mostly during the current fiscal year, with half of those layoffs occurring in Japan and the other half abroad.

    The reductions will be made by combining sales and indirect operations, closing locations, and letting go of Japanese workers who are retiring early. Panasonic’s website states that it employs about 228,000 people worldwide.

     Through restructuring, the company hopes to increase group profitability and reach a 10% return on equity, which is a measure of profitability, by the fiscal year that ends in March 2029. In the fiscal year ending March 31, 2027, Panasonic also stated that it will aim for a group adjusted operating profit of at least 600 billion yen, in part because of a reorganisation of its consumer electronics division, the closure of businesses that are losing money, and the simplification of its IT expenditures.

    In an update of its makeover released in February, the business stated that it will examine the operational efficiency of its group companies, specifically in the back-office and sales divisions.

    Restructuring and Future Plans

    Its lifestyle business, which comprises heating and ventilation systems and home electronics, would account for nearly half of the restructuring costs. The remaining 40% will be allocated to “other” industries, which includes its holding company.

    It didn’t anticipate incurring any restructuring expenses in its energy division. Due to anticipated increases in sales of batteries and energy storage systems, Panasonic also projected a 39% increase in operating profit at its energy division that produces batteries for electric vehicles, bringing it up to 167 billion yen for the fiscal year ending March 31, 2026.

    In the year ending in March, the energy company, which produces batteries for Tesla (TSLA.O), opens a new tab, and other vehicles made 120.2 billion yen, falling short of its own projection of 124 billion yen. Panasonic predicted that its overall operating profit for this fiscal year would drop by 13% to 370 billion yen.

    Reason for the Layoffs

    In an April interview with a Japanese publication, Yuki Kusumi, the CEO of Panasonic Holdings, stated that layoffs are required to outperform competitors. According to a report, the action is a component of the company’s management reform, which aims to address the significant changes in the global business climate.

     Panasonic intends to reduce its personnel, streamline and combine indirect tasks, and withdraw or close down businesses that are losing money.

    In its fiscal 2024 earnings report, which was made public that same day, Panasonic stated that its net profit fell 17.5% year over year to 366.2 billion yen (roughly 2.53 billion US dollars), while its revenue was 8.46 trillion yen (roughly 54 billion US dollars), down 0.5% from the previous fiscal year.

  • Tariff Trouble: GM Cuts 750 Jobs at Oshawa Facility

    The president of the union that represents workers announced on 2 May that General Motors is cutting off roughly 750 employees at its Oshawa Assembly facility as it adjusts shifts because of US tariffs.

     According to a news release from Unifor, the plant, which employs about 3,000 people, will switch from operating on three shifts to two shifts beginning this autumn. Unifor would not permit GM to barter Canadian jobs in order to win over Donald Trump.

    Lana Payne, national president of Unifor, described the action as a careless choice that directly affects Unifor’s members and might have repercussions for the whole network of auto parts suppliers. In addition to the 1,500 employees who work elsewhere in the supply chain, the plant will lay off about 750 workers, Payne told a media house.

    The shift change “will impact approximately 700 workers”, according to GM spokesman Marie Binette’s email, though she did not call the action a layoff. “We are committed to supporting employees through the transition,” she stated.

    Why Company Decided for a Layoff?

    Workers in Oshawa’s car industry have been preparing for the effects of U.S. tariffs on their livelihoods, and now they are facing layoffs. Last month, President Donald Trump imposed a 25% duty on all automobile imports into the United States.

    In an email to a media company, GM spokesperson Jennifer Wright stated that the company’s Oshawa facility will resume operating on two shifts due to anticipated demand and the changing trade situation.

    As GM refocuses the Oshawa facility to produce more trucks in Canada for Canadian consumers, these adjustments will contribute to a sustainable manufacturing footprint. According to Unifor, light and heavy-duty Chevrolet Silverado pickup vehicles are produced at the Oshawa factory for the North American market.

    These trucks are also assembled at plants in the United States and Mexico. As per Payne, GM has already given the required six months’ notice of layoffs. She stated that during those six months, she will fight back with her members every day in an attempt to persuade General Motors to change its decision.

    PM Offers Sympathy to Affected Workers

    In his first significant press conference since winning the federal election, Prime Minister Mark Carney expressed his “deepest sympathy” for the impacted employees and their families. The government is “fighting hard” for the auto industry, he added, and “making sure companies act in true partnership … in maintaining employment and investment in Canada.”

    “If not, there will be consequences for those companies,” Carney stated. Payne called the announcement of shift reduction by General Motors before Carney and US President Donald Trump started negotiations on a new economic agreement premature and disrespectful.

    Under Canada’s remission framework, Unifor urged the federal government to “review and reconsider” GM’s tariff-exempt status. According to the government’s website, this framework exempts businesses from paying retaliatory Canadian tariffs on US goods.

     In order to reiterate their dedication to Canadian investment and production, the union is also requesting that Carney speak with automakers.

  • Cybersecurity Giant CrowdStrike Lays Off 500 Employees

    500 workers will be let go by CrowdStrike. The decision to lay off roughly 5% of its global workforce was made public by the cybersecurity software company on 7 May.

    George Kurtz, the CEO of the company, claims that this choice is consistent with the plan to advance artificial intelligence’s use in business operations. A regulatory filing was used to announce the layoffs. CEO Kurtz clarified that artificial intelligence has become a key component of the business’ operations in a memo that was part of the filing.

    According to him, AI is helping CrowdStrike increase creativity, lessen the need for aggressive hiring, and enhance departmental results. According to Kurtz, AI has always been a key component of the business’s operations.

    AI helps brands innovate from idea to product more quickly and flattens the hiring curve. It increases client results, expedites the go-to-market process, and boosts front and back office productivity. AI is a force multiplier for the entire company.

    CrowdStrike will Continue Hiring

    In spite of the layoffs, CrowdStrike reiterated that it will keep hiring in crucial areas, especially in its go-to-market and customer success teams, in order to achieve its goal of $10 billion in recurring revenue annually.

    Between $36 million and $53 million will be charged as a result of the layoffs, which are anticipated to be finished by the end of the fiscal second quarter.

    According to Kurtz, the business will start holding meetings with impacted workers the next day and will finish these discussions as soon as feasible throughout all regions, in compliance with regional regulations and consultation mandates.

    Additionally, Kurtz presented the layoffs as a targeted attempt to reorganise the company for sustained expansion. He pointed out that CrowdStrike is consciously choosing to grow in a disciplined manner while still providing value to its clients.

    Layoffs Part of Workforce Adjustment

    In recent months, the technology industry has seen a broader trend of labour modifications, which includes the layoffs at CrowdStrike. Numerous businesses, including the tech giants, have recently announced additional layoffs; the majority of these have also been connected to the growing impact of artificial intelligence and general financial instability.

    Meta apparently laid off more than 100 workers in its Reality Labs business, which specialised in wearable technologies and virtual reality, earlier in April. According to reports, this action was taken to streamline collaboration between teams developing VR hardware and experiences.

    In April, Intel also revealed that it would be laying off around 21,000 workers, or over 20% of its staff. The corporation clarified that while it adjusts to changes under its new CEO, the layoffs are a part of a significant restructuring.

     In the meantime, Microsoft has decided to stop outsourcing after-sales assistance and is closing its operations in China, which will affect some 2,000 workers.

    In an effort to streamline its organisational structure, the corporation is apparently considering further layoffs that might take place in May, possibly focusing on middle management and non-coding positions.

  • PwC to Cut 1,500 Jobs Across US in Major Workforce Shake-Up

    PwC is the most recent of the Big Four accountancy firms to lay off employees. The company is laying off about 1,500 workers in the US, or about 2% of its 75,000-person US workforce, according to a media report.

     Employees in the audit and tax departments are the main targets of the layoffs. PwC has also made the decision to reduce campus recruitment in addition to the job losses. Nonetheless, the company stated that it will honour all current employment offers given to the interns from the previous year, who are anticipated to start working for the company later this year.

    According to a PwC spokeswoman, this was a tough choice that the company made carefully, thoughtfully, and with a great deal of consideration for how it would affect its employees. The company acknowledged that historically low attrition rates over a number of years had necessitated this action.

    Up For Promotion: Ended up Losing the Job

    According to a media source, Microsoft Teams invites marked as “time sensitive” were sent to the impacted employees. According to the article, one impacted individual stated that several of them were up for promotion, but they are now being cut off instead of receiving a rise in salary and a promotion. Today’s layoffs caught everyone completely off guard.

    Similar actions have also been taken by other Big Four companies. Plans to cut employees in its US consulting division were recently reported by Deloitte.

    According to a statement released last month by Deloitte spokesperson Jonathan Gandal, there is still a high demand for the company’s services overall.

    Based on low levels of voluntary attrition, the firm’s government clients’ changing demands, and moderating growth in some areas, the company is implementing moderate personnel actions. KPMG lay off 330 workers in its US audit division in November, which amounts to around 4% of the company’s staff.

    Layoffs have Become a Common Scenario in 2025

    With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025.

    Companies are still cutting employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.

    Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing.

    Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports. According to reports, AI-led restructuring and performance-based terminations are part of the corporations’ goals to increase the effectiveness of their personnel.

  • UPS Plans to Layoff 20,000 Employees

    UPS announced on April 29 that it would eliminate 20,000 positions this year, or around 4% of its global workforce. However, UPS clarified that the decision has nothing to do with tariffs and is instead the result of a previously declared goal to reduce its Amazon business and increase technology use.

    By mid-2026, UPS plans to halve its business with its biggest client, Amazon, as part of a “glide down” strategy revealed in January. The majority of the Amazon business that UPS is giving up is “not profitable for us, nor a healthy fit for our network,” according to a statement made by UPS CEO Carol Tomé.

    In the most recent quarter, UPS’s package volume from Amazon had already decreased by 16%, which was more than UPS had anticipated. As the latest step in that “glide down” strategy, UPS said that it will close 73 US buildings by the end of June.

    Infusing More Tech into the Operations

    Additionally, UPS stated that it anticipates increasing automation across its 400 facilities, from package sorting to label application to truck loading and unloading. “We will also reduce our reliance on labour with this reconfiguration,” Tomé stated.

    Over 300,000 UPS hourly workers are represented by the Teamsters union, which declared it will oppose any layoffs of its members. Sean O’Brien, the president of the union, stated that the Teamsters will not obstruct UPS’s plans to continue reducing corporate management.

     “But if the company intends to violate our contract or makes any attempt to go after hard-fought, good-paying Teamsters jobs, UPS will be in for a hell of a fight,” said O’Brien.

    Glenn Zaccara, a UPS spokesman, responded by saying the business plans to fulfil all of the conditions of the contract. However, Trump’s sweeping 10% tariffs on most imports, particularly the 145% taxes on Chinese imports, did have some impact on UPS.

    However, the business is still unsure of the long-term consequences.

    Uncertainty and Confusion Heating the Environement

    According to Tome, clients who frequently transact with China are “not thinking about exiting the business”. However, she added that many of them are unsure about exactly what they would do next. Many people are still holding out hope for a rollback of tariffs.

    “To be honest, there is a lot of uncertainty regarding the China orders,” she stated. “We are aware of the announcements. Actually, we have no idea if it will occur or if it will persist. We believe we don’t know a lot of stuff.”

    UPS predicts that its own revenue will decline in the second quarter compared to a year ago because it believes that its customers will be impacted by the tariffs and Amazon’s pullback. However, it stated that it is not yet prepared to release its own full-year guidance, though it did caution that it may do so in the future.

    She claimed that because all of those tariffs will eventually affect US consumers, there is a great deal of uncertainty in the second half of the year. Consumer mood is currently lower than it was at the start of the year. However, the customer is still in good health.

  • Infosys Fires 195 Additional Trainees at its Campus in Mysuru

    According to business emails dated April 29, Infosys has fired an additional 195 trainees out of a total of 680 due to internal assessment failures. Since February, the number of impacted trainees has increased to almost 800.

    This is the fourth round of exits at the Bengaluru-based software behemoth. About 150 of the affected individuals have signed up for outplacement services, while about 250 have enrolled in upskilling programmes offered by NIIT and UpGrad.

    Infosys has partnered with NIIT for IT training and UpGrad for BPM training. More than 300 trainees were laid off under similar conditions in February, followed by 30 to 35 in March, while the second-largest IT services company in India laid off roughly 240 on April 18. Through NIIT and UpGrad, Infosys is providing free upskilling classes to those who are impacted.

    Revenue Growth Just 0 to 3% this Fiscal

    The layoffs occur while Infosys manages a low level of demand. For the upcoming fiscal year, the company has projected revenue growth of only 0% to 3%, highlighting the ongoing unpredictability in its primary markets.

     Despite the extra preparation time, doubt-clearing sessions, many mock assessments, and three attempts, trainees have not met the qualifying criteria in the “Generic foundation training programme”, according to the findings of trainees’ final assessment attempt.

     The email that was sent on April 29 said, “As a result, you will not be able to continue your journey for the apprenticeship programme,” which was similar to the communication that was received earlier in the month.

    The impacted trainees, who were onboarded after a delay of more than 2.5 years, are being offered other career paths by the software company, including 12 weeks of training for possible roles in Infosys Business Process Management (BPM). Furthermore, Infosys announced that it will pay for the training of anybody who chooses to enrol in the BPM course.

    Perks Offered to Exiting Trainees

    For the impacted trainees, the company is also providing a letter of release and a one-month ex gratia payment. The company will provide transportation from Mysuru to Bangalore and a normal travel stipend to their hometown for those who choose not to pursue a career in BPM.

    Trainees can stay at the Employee Care Centre in Mysore till the day of their departure if necessary.

    Clearance from Karnataka Labour Department

    Based on the documentation gathered, the Karnataka Labour Department cleared Infosys on February 27 of any labour law infractions pertaining to trainees’ departure. They were all merely trainees, according to a media report that cited a source, and some of them had three months of training.

    Since this cannot be considered a layoff, these labour laws do not apply. Only when there is regular employment does a layoff apply. An employer-employee relationship does not exist. They weren’t workers; they were all apprentice trainees.

    Following rumours of trainee layoffs, representatives from Karnataka’s Labour Department previously visited Infosys’ campuses in Bengaluru and Mysuru to evaluate the situation.

    Prior to this, the Union Labour Ministry sent a letter instructing the Karnataka Labour Commissioner and Labour Secretary to look into the situation and take immediate measures to settle the conflict.