Senior employees at Bengaluru-based Infosys have reportedly not received salary increments in April. However, the tech company clarified that they would get the salary hike from July 1.
The employees who received a pay hike comprised 15 per cent of the senior staff. However, The Times of India states that not everyone received the increment. Sources said that delivery managers and other senior executives have received a three–five per cent hike while many others were deferred.
It is said that one of the reasons for the deferrals can be to maintain the margin drop. This has raised a lot of red flags for those who did not receive any increment since many companies in the IT sector have seen a large number of layoffs, especially for senior management.
Infosys, along with other IT firms, has been forced to maintain margins and begin cost-cutting. This also includes travel restrictions.
"Earlier, we just needed to inform the company about travel plans. Now, multiple approvals are required and the broader message is to be very selective about travel," a senior executive was quoted as saying by TOI.
In the US, Infosys has been making an effort to hire locals and this has also put a lot of pressure on the margins. Recently, the company had hired 9,000 workers in the US.
Layoffs in companies have been making news over the past few months. IBM had earlier let go over 300 employees in order to hire more skilled workers who have knowledge of automation, machine learning and cloud computing.
"This in accordance with IBM's strategy to re-invent itself to better meet the changing requirements of our business and to pioneer new high-value services. IBM "remains committed to being an essential part of its (India's) growth," the company's official statement read in the Economic Times.
In addition to this, Cognizant had also laid off 200 employees mid to senior employees to make room for younger and more skilled workers.