Infosys to cut multiple senior roles, ensure faster decision-making
BusinessToday.In June 1, 2020
Infosys is restructuring the company's higher rungs in order to ensure faster decision making and flatten the organisation. The company is looking to reduce the senior roles in a staggered manner.
According to a report in The Economic Times, Infosys would trim the workforce at senior levels of job level (JL) 7 and above as well as those in the ranks of delivery managers, AVPs, VPs and SVPs.
The company has around 13,000 employees at JL7 and above. The plan is to reduce 10-15 per cent of this workforce in a staggered manner, which would impact around 1,300 executives.
As per the report, Infosys plans to break the five-tiered structure into two. CEO Salil Parekh has reportedly reviewed each of the levels. Reducing the levels would ensure that there is greater responsibility and accountability on senior executives who are people managers. This restructuring would impact sales, delivery, BPO, and support services said the company.
The restructuring would reduce cost significantly, the company believes, as the salaries for managers are in the range of Rs 35-40 lakh. VPs and SVPs receive higher remuneration.
However, a spokesperson told the daily that there are neither plans for workforce reduction nor do they have any predefined percentage of exits. "However, as a performance-driven organisation, some involuntary attrition is integral to the normal course of business every year at Infosys," the spokesperson said.
Implementation of a similar structure was in the works under former CEO Vishal Sikka. A pilot project was also initiated in the manufacturing unit to identify overlapping roles. Sikka's exit put the brakes on the project.