Infosys has reported an 11.7% year-on-year decline in its Q4 FY25 net profit, settling at ₹7,033 crore, as the company faces macroeconomic headwinds and cautious client spending.
Lower Bonus Payouts for Employees
During an internal conference call, Infosys HR executives informed employees that performance bonus payouts for Q4 FY25 would be lower than expected, citing profit decline and weak revenue guidance for FY26.
Despite acknowledging extra hours and weekend work, the leadership assured employees that better bonus recommendations would be considered once the business climate improves.
Revenue Growth and Market Challenges
Infosys’ revenue grew 7.9% YoY to ₹40,925 crore, but missed market expectations. The company’s FY26 revenue guidance remains in the low single digits, reflecting continued uncertainty in the IT services sector.
Industry-Wide Compensation Trends
Infosys’ move aligns with cautious compensation strategies across the Indian IT sector:
- TCS deferred salary hikes, citing global economic volatility.
- Wipro has yet to announce any pay revisions, raising concerns among employees.
Stricter Work-From-Office Policy
Infosys has also tightened its return-to-office policy, requiring employees to attend office at least 10 days per month. A two-tier approval system is now in place for remote work requests, with unauthorized extra work-from-home days leading to leave deductions.
Employee Sentiment and Future Outlook
While Infosys has promised future compensation adjustments for top performers, employee morale remains uncertain amid profit declines and policy changes.
With global economic instability persisting, Infosys and its peers are navigating a challenging business environment, balancing cost management with employee engagement.
