Indian IT services company Infosys has sacked over 2,000 people after an appraisal of 60,000 workers revealed underperformers.
Indian IT service providers are attempting to cut costs as business levels fall in the face of their international business customers cutting their IT budgets.
Infosys head of HR Mohandas Pai told the The Wall Street Journal, "The tolerance for non-performance has come down to zero.
"The appraisal was conducted for 60,000 of our employees. At the bottom, some 3.5% of the employees were either outplaced or left the company. It is an annual scenario after every performance assessment. In fact, normally the bottom size is 5%."
Kris Lakshmikanth, chief executive at Indian recruitment company Headhunters, said this type of activity is normal among Indian firms. "Between one and five per cent are usually cut every year because of poor performance."
He added that "times are bad this quarter" for Indian software companies.