Infosys New Announcement: Infosys has officially announced that it will provide salary hike to its employees from next week. The rollout will take place on November 1, which is just a few days away. This step has been taken after the company postponed its annual salary hike for the last few months.
In a significant development, Infosys has officially announced that it will be providing salary hikes to its employees starting next week. The rollout will take place on November 1, which is just a couple of days away. The news was shared during a town hall meeting by the company’s Chief Human Resources Officer, Shaji Mathew. This move comes after the firm had deferred its annual salary hikes for the past few months.
Traditionally, Infosys has a practice of rolling out its annual salary hikes for employees below the senior management in April, with other people in the organisation receiving their share of hikes in July. This year, the company had postponed the salary increments due to business optimization measures taken to address industry headwinds.
During an investor call following the earnings report, Infosys’ Chief Financial Officer, Nilanjan Roy, explained that the decision to delay the salary hike was made to address inefficiencies within the company. He noted that these steps have contributed to a notable 50 basis points improvement in the company’s margins.
Roy elaborated, “Like I said, we had a good quarter two. And as I explained in my margin walk, we nearly had a 50 basis points improvement from our project Maximus on cost optimization.” In addition to the salary hikes, the company is also focusing on reducing inefficiencies through initiatives like improving utilization, decreasing workforce strength, and forgoing the campus placement drive for the current year.
Infosys’ move comes at a time when the company has experienced a consecutive three-quarter reduction in its workforce, despite a declining trend in employee headcount. Infosys is actively working on increasing utilization and making efficient use of its bench strength. However, there are currently no immediate plans to return to campus recruitment.
