Cost-Cutting Measures At Infosys: Average Variable Pay Reduced To 60%

In Februrary this year, it was indeed shocking site to witness Infosys terminating 600 freshers who did not pass an internal assessment. Now Infosys too seems to have joined the bandwagon of also implementing cost-cutting measures due to the challenging economic conditions. 

As per a recent India Today report, Infosys has reduced the average variable pay of its employees by 40 per cent for the quarter ending in March 2023. This implies that, on average, Infosys employees will receive 60% of the originally promised variable pay.

It is not the first time that the employees' variable pay has been reduced, in 2022, there were reports indicating that Infosys had reduced its employees' variable pay by 30% in Q1 and 35% in Q3.

The news was made to flow to employees via an internal mail where the company acknowledged that while the overall financial year 2022-2023 showcased strong performance, the last quarter was affected by a "volatile market and unforeseen events,” reported Moneycontrol. 

“While FY23 was a year of strong performance overall, the quarter that went by was impacted by a volatile market and unforeseen events,” the email read.

According to reports, employees are expected to receive notification of their variable pay within this month.