Infosys has communicated to employees that performance bonus payouts for the fourth quarter of FY25 will be significantly lower than anticipated, citing continued volatility in the global IT services landscape. During a recent internal conference call, senior HR executives and delivery managers informed employees about the reduction, linking it directly to the company’s 11.7% year-on-year dip in net profit, which stood at ₹7,033 crore for Q4.
The move comes amid cautious revenue guidance for FY26, which remains in the low single digits, signaling conservative growth expectations as the IT sector grapples with macroeconomic uncertainties and restrained client spending.
While employees expressed concern over the cuts, Infosys leadership emphasized that this is a temporary downturn and assured that top performers will be rewarded during the next growth cycle with appropriate bonus recommendations.
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HR Leaders Address Employee Concerns Over Conference Call
According to a report, the bonus reduction was communicated during a bridge call involving HR and delivery teams, affecting a large delivery unit that forms a significant part of Infosys’ 323,000-strong workforce.
During the call, team leaders acknowledged the extra hours, weekend work, and sustained efforts made by employees, particularly amid high client demands and delivery deadlines. They reminded employees that during periods of stronger business performance, the company had provided hikes, performance-linked bonuses, promotions, and on-site international roles, suggesting a cyclical compensation model aligned with business health.
Notably, in the December quarter, Infosys had distributed an average of 80% performance bonus to eligible employees across delivery and sales functions. In contrast, the Q4 payouts will be considerably subdued, though specific percentages were not disclosed.
In February, the company also rolled out salary hikes between 5% and 8%, which many now view as a buffer against current performance-linked shortfalls.
Work-from-Office Policy Now Mandatory, Leave Deductions for Violations
Alongside compensation-related updates, Infosys has reinforced its Work-from-Office (WfO) policy, requiring employees to report to the office for at least 10 days per month, effective March 10. The policy marks a shift from the company’s earlier hybrid approach and includes a two-tier approval system for extended work-from-home (WFH) requests.
Failure to adhere to this mandate without proper approval will now lead to deductions from the employee’s leave balance, making compliance critical.
This move comes in line with industry-wide trends, where major IT firms are increasing in-office mandates to boost productivity, collaboration, and accountability, particularly amid tighter performance scrutiny.
Balancing Cost Discipline with Workforce Morale
Infosys’ actions reflect a broader recalibration happening across the Indian IT sector, where firms are looking to optimize cost structures without alienating key talent. While the reduced bonuses and return-to-office mandates may cause short-term discontent, the company has attempted to balance business realities with future-oriented reassurances.
As the fiscal year closes on a challenging note for Infosys, eyes will now be on its FY26 performance and whether promised compensation rebounds for employees materialize as business conditions stabilize.