Santosh Lad calls out Infosys for lack of Transparency in Tech Layoffs

BM TEAM

Karnataka’s Labour Minister Santosh Lad was not seen mincing words while addressing the recent firing spree at Infosys in a recently held meet at the Vikasa Soudha. The meeting was conducted with Infosys officials in the presence of officers from the state’s Labour Commissioner.

The Centre had directed the state’s labour commissioner to investigate the terminations following a complaint by IT employees’ union NITES. The freshers, who had patiently waited since 2022 to begin their careers, were shown the door after three unsuccessful attempts at internal tests.
Referring to the dismissal of 350 freshers for failing internal assessments, he rejected the notion that it was merely a case of underperformance. Instead, he called it an unplanned, disorganized move that lacked transparency in how the company handled layoffs.

Infosys claimed that underperforming employees are placed on a Performance Improvement Plan and given time to improve. If they still don’t meet expectations, they’re asked to resign, sometimes with additional pay.

Lad noted that employees fear filing complaints, questioning whether these assessments were truly fair or just a pretext for layoffs.
Unlike other industries, IT and BT companies follow no common hiring policies. Each firm plays by its own rulebook, except there isn’t one. Lad now wants IT firms to coordinate with the Labour Department and create a common framework.
Disorganization was highlighted when he referred to the trend where IT companies hire aggressively, bench employees, and resort to sudden layoffs. This creates chaos, fear of job stability, and an unhealthy work culture.

He also flagged concerns about employees being expected to be available 24/7, sacrificing personal space, and constantly working under unrealistic deadlines, affecting their mental health.
His concern extended to women employees, pointing out the lack of clear data on their employment to assess inclusivity or discrimination. He urged companies to understand the reasons behind declining performance instead of simply handing out termination letters.

He also insisted that while the government is ready to provide infrastructure, companies need to commit to bridging the skill gap by providing training to upskill workers, especially in rural areas. He called for workforce training to align with industry needs.

He highlighted a regional hiring disparity, pointing out that most of the employees fired were from outside Karnataka. He stressed that Karnataka is not being parochial, but local professionals should receive some level of preference in recruitment.
What remains to be seen is, does profitability remain the sole priority, or will employee stability take center stage? Will IT firms be held accountable or will they continue operating in their own bubble?