In early 2025, Infosys, one of India’s largest IT services firms, initiated a series of layoffs that have drawn widespread attention and criticism. The company terminated hundreds of freshers who failed to meet internal assessment standards, triggering allegations of unfair practices and leading to government inquiries.
The layoffs began with around 350 trainees being dismissed from the company’s Mysuru campus after they failed to clear internal programming assessments. Despite being given three attempts, many were unable to achieve the minimum qualifying marks. Infosys stated that this assessment-based termination process has long been part of its training model to ensure only adequately skilled professionals are deployed on client projects.
A few months later, a second wave of layoffs saw an additional 240 freshers terminated for similar reasons. These individuals had been part of the 15,000 new hires brought on board during the 2024–2025 financial year. Their termination came after nearly six months of training, further sparking debate about whether the assessments were transparent and fair.
The move created significant backlash among those affected and labor advocacy groups. Many trainees claimed the assessments became increasingly difficult after onboarding, leading them to believe the process may have been designed to filter out employees. Reports emerged of employees being asked to leave the premises immediately upon termination, without prior notice or sufficient compensation. Several described the experience as abrupt and distressing, citing a lack of support or recourse after losing their jobs.
These developments led to an official inquiry. The Union Labour Ministry directed the Karnataka Labour Department to investigate the allegations. The interim report from the department suggested that there were no violations of labor laws, as the dismissals occurred during the training period, which was not classified as formal employment. However, labor unions continue to question the ethics of terminating employees after investing months in their training, only to offer minimal severance and little guidance post-termination.
In response to the controversy, Infosys clarified that affected employees were eligible to take up skill enhancement programs via external platforms, and some were encouraged to reapply after completing their training. The company also announced that it would hire over 20,000 freshers in the upcoming financial year, signaling its ongoing need for young tech talent despite the recent cuts.
The Infosys layoffs of 2025 underline the growing tensions in the tech industry between performance expectations and employee welfare. As the sector continues to adapt to rapidly changing technologies and fluctuating client demands, IT firms are increasingly relying on stringent evaluation processes. However, this trend also raises questions about transparency, fairness, and the broader responsibility companies have toward the individuals they recruit.
Ultimately, the Infosys episode serves as a case study in how global IT firms manage large-scale hiring, training, and performance in an ever-competitive environment, and whether these systems adequately protect the interests of new and vulnerable employees.