Infosys to cut senior-level roles to flatten the structure in a staggered manner in order to ensure faster decision making and flatten the organization.
According to a TOI report, 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.
At present, the company has over 30,000 employees in senior roles such as JL 6, 7 and 8 out of which around 13,000 employees are in JL7 levels and above. The plan is to reduce, in a staggered manner, 10-15% of the people at JL7 and above, which would impact over 1,300 executives.
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 proposed move will make decision-making faster and will give frontline leaders more flexibility. It will also reduce cost significantly since the salaries for a delivery manager or an industry principal is an average of Rs 35 lakh-40 lakh. VPs and SVPs receive much more.
However, a spokesperson told media that there are neither plans for workforce reduction nor do they have any predefined percentage of exits. “However, as a performance-driven organization, 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.
