Infosys’ RBS contract loss to hit 3,000 employees

IT giant Infosys may axe about 3,000 jobs after the Royal Bank of Scotland announced a change in plans last week.

The IT services major said that “last week the Royal Bank of Scotland announced that it will no longer pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G).

“Instead it will pursue other options for the divestment of this business,” it added.

Infosys, which is a W&G program technology partner for Consulting, Application Delivery and Testing services, said that subsequent to this decision, they will have to “carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months,” it said in a notification to the BSE.

However, Infosys also said that RBS is a key relationship for Infosys and the company looks forward to further strengthening our strategic partnership and working with them across other strategic and transformation programs.”

Infosys shares tanked 3.4% in early trade, before trading at Rs 1035.10, down Rs 28.20 or 2.65% lower from the previous day’s close at 0921 hours.

At the time, the 30-shares benchmark BSE Sensex was was trading down 0.08% or 21.85 points lower at 28,130.55 from previous day’s close.

Though Infosys did not specify the quantum of impact on revenue, estimates indicate revenue loss of around $40-50 million for the current year.

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