Infosys, the country’s largest IT corporation, recently announced that it might have to rejig 3,000 jobs following the Royal Bank of Scotland's (RBS) decision to cancel the project to set up a separate bank in the UK.
RBS announced last week that it will no longer pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G). Instead, it will look at other options for the divestment of this business.
“Infosys has been a W&G programme 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,” the company mentioned in an official statement.
However, a spokesperson shared that there will be no lay-offs as the company will re-allocate the resources to other projects.
Infosys also conveyed that RBS is a key relationship for the company and they look forward to further strengthening their partnership and working with them across other strategic and transformation programmes.
Infosys’ stock that was trading at Rs 1,054.10, went down by 0.87 per cent on BSE in the afternoon session yesterday, reflecting the market sentiment on the loss expected from RBS’ decision to cancel the project. As a consequence, the company may have to downgrade its revenue guidance for the fiscal. However, only time will tell whether the thousands of jobs at stake will survive or will have to be taken away owing to tough market conditions.