India’s second-biggest outsourcer Infosys has announced that it is planning to cut costs by USD 100-150 million in FY20 by hiring more freshers in order to minimize employee expenditure and realign the roles for the middle, senior-level management, said Nilanjan Roy, Chief Financial Officer (CFO).

During an analyst meeting, Roy said: “There are 21 tracks we are looking at for cost-optimization. We are targeting $100-$150 million in cost savings as the year goes on.”

On account of a boost in investments in order to promote growth, the company margins had fallen substantially. However, now the company is looking forward to cutting corners as a large part of its investments have concluded.

Also Read: Infosys to shed 10,000 mid-senior level jobs

“Infosys was geared towards bettering the bottom-end of its pyramid, which had become more barrel-shaped, by recruiting freshers. It was also looking to recreate the pyramid onsite through fresher hiring,” he stated.

Infosys would shift to an asset-lite model for new infrastructure, he added.

In 2018, the company hired 1,700 freshers in the US and Europe.

As per the analysts, it is a routine move to hire freshers to minimise costs. The company has also clarified that it has no plans of removing any of its existing employees.

Also Read: Capgemini cuts off 500 jobs in India

“There is no planned layoff. We have performance reviews and people who are not performing are asked to leave. This is normal, there is no targeted layoff,” said UB Pravin Rao, Chief Operating Officer (COO) said.