Infosys slashes fourth-quarter average bonus payout to employees to 65%, cites a ‘challenging macroeconomic environment’

Infosys , India’s second-largest IT services firm, has rolled out an average bonus payout of 65% in the fourth quarter amid a challenging macroeconomic environment, according to Moneycontrol, citing sources. This compares to Infosys rolling out an average payout of 80% in the third quarter, and an average payout of 90% in the second quarter.

The bonuses are primarily for junior and mid-level staff, and range from 0% to those rated “needs improvement” and 83% to those rated “outstanding”. The bonuses will be rolled out in the May payroll cycle. “Amidst the complex macro-economic environment in the fourth quarter, we remained client-focused and responsive to market needs,” Infosys wrote in an internal email, as seen by Moneycontrol.

The developments come a month after the board approved the grant of employee stock option plans (ESOPs) of about ₹50 crore to its CEO, Salil Parekh, along with granting 5,000 restricted stock units (RSUs) to eligible employees. Last month, the IT services major reported an 11.7% year-on-year decline in its net profit to ₹7,033 crore for the quarter ended March 31, 2025. Meanwhile, its revenue jumped 8% to ₹40,925 crore for the fourth quarter.

Late last month, Infosys decided to let go of 195 trainees after they failed to meet the qualifying criteria in internal assessments, as per an official email that was reviewed by Fortune India, making it the latest round of such departures since February, bringing the total number of trainees impacted to nearly 600.

On April 18, 240 were terminated, while March saw the exit of around 30 to 35 trainees. In February, the country’s second-largest information technology firm axed 300 trainees. Infosys communicated the decision on April 29, noting that despite extended preparation time, mock assessments, and support sessions, the trainees had not cleared the Generic Foundation Training Program.

The affected trainees were offered a choice between two company-sponsored external training programmes: a 12-week course for potential roles in Business Process Management (BPM), and a 24-week course in Information Technology fundamentals. Out of all those affected, 250 trainees have availed of these upskilling courses, across both UpGrad and NIIT. Furthermore, 150 more have registered for outplacement.