Image Credit: LinkedIn
Bengaluru: Infosys, India's second-largest IT services firm, has announced reduced performance bonuses for the fourth quarter of FY25 following an 11.7% year-on-year decline in net profit.
The company attributes the cuts to ongoing business slowdowns and has simultaneously reinforced its work-from-office (WFO) policy, impacting its global workforce, including a significant number of Indian professionals in the U.S.
Key Facts:
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Q4 FY25 net profit dropped by 11.7% year-on-year, prompting bonus reductions.
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Employees are now mandated to work from the office at least 10 days per month, effective March 10, 2025.
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Unapproved remote work beyond the set limit will lead to deductions from leave balances.
During a recent conference call, Infosys HR executives informed employees about the diminished bonus payouts, citing the current business downturn.
Despite acknowledging the team's dedication, including extended work hours and weekend commitments, the company emphasized that the downturn is temporary and assured top performers of better rewards in future growth phases.
Earlier in the fiscal year, Infosys had granted salary hikes ranging from 5% to 8% for most employees.
In the December quarter, the company distributed average bonuses of 80% to eligible staff across delivery and sales functions.
However, the financial headwinds in Q4 have led to tighter financial rewards.
The reinforced WFO policy requires employees to be present in the office for a minimum of 10 days each month.
A two-tier approval process has been introduced for additional remote work, and any unapproved work-from-home days beyond the stipulated limit will result in deductions from the employees' leave balances.
Infosys has reminded employees of the support extended during better financial periods, including promotions, international opportunities, and favorable bonuses.
While the immediate outlook remains subdued, the company is positioning itself for recovery and has assured that employee contributions will be rewarded once the business climate improves.
"While acknowledging employees’ dedication, including long hours and weekend work, company leaders emphasized that the downturn is temporary. Top performers, they assured, would be considered for higher bonuses in the next growth phase," as reported by HRKatha.
The bonus reductions and stricter WFO mandates reflect the broader challenges faced by the IT sector amid global economic uncertainties.
For the Indian diaspora and professionals on H-1B visas in the U.S., these developments underscore the importance of adaptability and staying informed about corporate policy shifts.
Do You Know?
Infosys' decision to enforce a minimum of 10 in-office days per month aligns with a growing trend among IT firms aiming to balance remote work flexibility with collaborative in-person engagements.
Key Terms:
Performance Bonus: A financial reward given to employees based on their work performance, often tied to company profitability.
Work-from-Office (WFO) Policy: Company guidelines mandating employees to work from the physical office for a specified number of days.
H-1B Visa: A U.S. visa that allows companies to employ foreign workers in specialty occupations, commonly used by Indian IT professionals.