Information technology service company, Infosys has reduced its variable payout for Q4FY23 to 60 per cent, its lowest ever. In the first quarter of FY203, the tech firm had lowered the variable pay to 70 per cent and then in Q2 to about 65 per cent.
Wipro, on the other hand, had shelled out 87 per cent variable pay for the third quarter of 2022 across all units and 100 per cent in the second quarter.
Infosys has reportedly informed its employees, through email that even though FY23 had witnessed “strong performance” on the whole, the last quarter was adversely affected by unprecedented events and the volatility of the market. The mail urged employees to work as a team and help deal with the changes in the business scenario.
In February this year, the tech company was in the limelight for firing 600 freshers in a bid to cut costs, just as other IT companies worldwide had done.
The IT major reported consecutively weak Q1FY23 and its profit after tax was about 16 per cent down for Q4FY23. For FY2024, it witnessed extremely slow growth in revenue, of four to seven per cent — probably the slowest in six years.
In the March quarter, the company witnessed a dip in attrition rate, which dropped to 20.9 per cent compared with 24.3 per cent in December.
