Is Infosys getting tougher on poor performers?

The economic slowdown has made Infosys Technologies, India’s second-largest IT services firm by revenues, take a harder look at employee performance. The firm has put 2,200 employees under the scanner for non-performance this year — more than double the number last year, a senior executive said.

Last year, about 1.5% of IT services staff or about 1,000 employees figured among the bottom performers. This year, the percentage has shot up to about 3.5%. About 600 of such non-performers have left the company already this year.

Such employees are put under a performance improvement plan, provided mentoring and their performance is reviewed for a quarter. “When the times were good, people got away with things. Our tolerance of non-performance has come down now,” Infosys director (HR, education & research and administration) TV Mohandas Pai said.

Meanwhile, the IT services major has made about 20,000 job offers to college students across the country for 2009-10. The company will honour the commitment made, Pai said.

However, there could be lower or even no wage increases at Infosys next fiscal. “Wage increase next year will be subdued, if there will be an increase,” the Infosys director said.

The IT services firm said it expects IT budgets of clients to be flat or may even reduce 5-10% next fiscal. “Clients are in pain and they want us to share the pain. Their ability to spend is lower,” he said.

Economictimes

'Bloody Monday' sees over 50,000 job cuts

Tens of thousands of job losses were announced in the US on Monday. American economists say they expect the recession to worsen this year.

US heavy vehicles maker Caterpillar said it would cut over 20,000 jobs to deal with the challenging global business environment.

The company had earlier announced axing 15,000 workers in 2008. The people who will lose their jobs amount to about 18 per cent of the company's total workforce. Caterpillar currently employs about 1,13,000 workers.

Last week, Microsoft said it would cut 5,000 jobs over the next 18 months.

Research-based biomedical and pharmaceutical company Pfizer/Wyeth has announced a layoff of 20,000 workers while Texas Instruments will axe 3,400 employees.

In Europe too, more than 10,000 job cuts have been announced.

Financial firm ING has announced that 7,000 employees will be sacked.

Other companies that have recently announced job cuts include electronic giant Philips which will axe 6,000 workers and UK's steel manufacturer Corus which will layoff 3,500 among others.

Hoping to deal with the financial crisis soon, US President Barack Obama is lobbying for a quick Congressional passage of his $825 billion stimulus package.