Infosys has clarified that it does not expect any layoffs as a fallout of the RBS (Royal Bank of Scotland) project ramp down. According to ET Now, the IT major has said that while 3,000 employees will be affected after RBS’ decision, they will be absorbed in other projects over the course of the next few months. Last week, RBS had said it will no longer pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G). Infosys was W&G programme technology partner for consulting, application delivery and testing services.
“Infosys has been a W&G program technology partner for Consulting, Application Delivery and Testing services, and subsequent to this decision, will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months,” India’s second largest IT-services major had said in a release on Saturday. RBS had awarded a five-year 300-million euro IT contract to Infosys and IBM for W&G. According to reports, a major portion of this amount, that is around $200 million, was to go to Infosys.
Shares in Infosys slid as much as 3.35 per cent on Tuesday after Infosys’ announcement. While declaring its first quarter results last month, Infosys had warned that won’t make its previous revenue target for fiscal year. This it had blamed on the Brexit vote, which left the company with little visibility on future business prospects. Infosys reported a consolidated net profit of Rs 3,436 crore, up 13.47 per cent, against Rs 3028 crore in the corresponding quarter a year ago.