Infosys' scrip fell by over one percent Tuesday after the company
said it will ramp down about 3,000 jobs following Royal Bank of
Scotland's decision to cancel the project to set up a separate bank in
the UK.
Shares of the company went down 1.16 percent to end at Rs 1,050.95 on BSE. During the day, it lost 3.35 percent to Rs 1,027.60.
At NSE, shares of the company declined 1 percent to settle at Rs 1,051.80.
RBS announced last week that it will not pursue its plan to separate
and list a new UK standalone bank, Williams & Glyn (W&G), for
which Infosys was a key technology partner.
"Infosys has been a W&G program 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," Infosys said in a
statement.
An Infosys spokesperson clarified that these jobs are not being cut
and that the employees will be reallocated to other projects.
RBS is a key relationship for Infosys and the company looks forward
to further strengthening strategic partnership and working with them
across other strategic and transformation programmers, it added.
While Infosys has not specified the impact of the cancellation, market analysts peg it at around USD 40 million.
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