Infosys will roll out performance bonus for eligible employees for the July-September quarter from this month onwards, according to a media report. The IT services major will be giving out 80 percent payout, coming at a time when the company has slashed the upper end of its revenue guidance and decided to skip going to college campuses for hiring, a reflection of tough business environment.
Employees who fall below the manager category and above entry levels will be eligible for this range of payout. Individual pay outs will differ based on performance and contribution for the quarter, The Economic Times reported. The performance bonus budget will be shared with the unit delivery managers who will then distribute the amount the respective units this week.
Moneycontrol could not independently verify the ET report.
Meanwhile, Infosys’ headcount has continued to decline in the second quarter by 7,530 and freshers who received offer letters are still awaiting on boarding. This was the steepest fall in quarterly headcount for the company in a quarter.
Skipping campus hiring
During the company’s Q2 earnings conference, CFO Nilanjan Roy said that the company evaluates hiring plans each quarter and doesn’t plan to go to campuses to hire yet.
Infosys also slashed its guidance sharply at the end of Q1, lowering the upper end of its guidance expecting revenue growth to come at 1-2.5 percent for full year of FY24. Chief Executive Officer Salil Parekh told analysts that there are delays in the starting of large programs, and there are the deal closures were also taking longer.
“We are seeing discretionary spend which is coming down and we saw that continuing on transformation programmes being slow, that is also continuing on in this quarter,” he had said. This factored in that Q3 and Q4 are seasonally weak quarters for the sectors.
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