But while this maybe the ground reality according to many, the massive downsizing has a hurtful impact on the morale of employees. One Infosys employee based out of Bangalore told CNBC that the morale in the company is generally low but the restructuring is mostly seen at senior management levels.
"It feels bad to see people leave like this. I have been speaking to my friends in other tech companies and everyone feels a bit concerned about their jobs. Performance-based assessments happen every year but this year feels different. "
A number of employees within the Indian IT sector that CNBC spoke to said there was general unrest among employees who had started approaching labor unions to complain against this massive performance-based restructuring drive.
Nasscom, the apex Indian information technology body, earlier dismissed reports about mass layoffs by software companies. In an official statement, Nasscom called recent media reports of mass layoffs as incorrect and said the industry continues to be a top hirer with over 150,000 people being employed on a net basis each year.
"Talent and skills are the key building blocks for the industry, which is intensifying investment in skilling or re-skilling its workforce to strengthen its foundation on a continuous basis," said Nasscom.