Infosys Warns Employees of Lower Q4 Bonuses Amid Profit Dip

Bengaluru-based IT giant Infosys has informed employees their Q4 FY25 performance bonuses will be less than they anticipated due to ongoing disruption in the global software services industry. The company’s HR team recently held a conference call with a large delivery unit and explained that the payouts were lower than expected because their profits were down and they were feeling cautious about the business climate.

The Economic Times reports that Infosys HR and delivery managers acknowledged the employee’s contributions especially in terms of extra hours and weekend work. They even reassured employees that the temporary reduction in bonuses is a short-term measure and once we get past covid and the economy gets back on track, those employees who are good performers can expect much more robust bonus recommendations.

Infosys provided salary increases of 5% to 8% to most employees in February of this year. In Q3 FY25, with the increase of around 80% bonus payouts to eligible employees in delivery and sales functions which comprise a significant portion of its 323,000 employees.

For the quarter that ended March 2025, Infosys had an 11.7% drop in net profit year-on-year to INR 7,033 crore. Revenue guidance for FY26 is also in low single digits and the demand uncertainty is still ongoing.

In addition to the bonus update, Infosys has also taken measures to strengthen its work from office (WfO) policy. Beginning March 10, employees are now responsible for spending at least 10 days per month in the office. Employees wanting to exceed the work remotely maximum require two-tier managerial approval and any excessive days of remote work will now come out of their leave balances.

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Despite these short term restrictions, Infosys management remains optimistic about being able to reward high performers in the next phase of growth.