India's second-largest software outsourcer
Infosys is planning to cut up to 5,000 jobs, a report said on Friday, as
it seeks to reduce costs in a tough business environment.
"Infosys is asking the worst performers,
about 3-4 percent of the 151,000 work force, to leave straightaway," The
Economic Times said, citing people familiar with the development.
The Bangalore-based firm wants to reduce costs while moving towards a more aggressive sales strategy, the business daily said.
Infosys was not available to comment on the report when contacted by AFP.
The firm, which is also listed on the Nasdaq
in New York, has been struggling to expand its business and has missed
sales targets, lost market share and seen its stocks slide in the past
year as revenues from the United States slow down.
Amid intense competition, Infosys, which lags
in growth to rivals TCS and Wipro, in October announced a six-percent
pay rise for Indian employees and a two-to-three percent increase for
overseas staff.
The firm projected an unchanged estimate of $7.34 billion for its full-year revenues for the fiscal year ending March 2013.
It will report its third quarter earnings next week, but analysts say the near-term outlook for the firm remains challenging.
Infosys, which is in the midst of a top
management shuffle, has decided to focus on higher value software and
consulting services for clients instead of labour-intensive outsourcing
services.
One-fifth of Infosys' revenues come from
Europe, and in recent years the firm has shifted focus to emerging and
new markets such as Singapore, Brazil, Mexico and eastern Europe.
© 2013 AFP
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© 2013 AFP
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