3,000 jobs to get affected after RBS project scrap: Infosys

NEW DELHI: Infosys has said it will ramp-down about 3,000 jobs following Royal Bank of Scotland’s (RBS’) decision to cancel the project to set up a separate bank

NEW DELHI: Infosys has said it will ramp-down about 3,000 jobs following Royal Bank of Scotland’s (RBS’) decision to cancel the project to set up a separate bank in the UK.

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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’ shares fell 3.35% on the BSE in morning trade, but recovered to end over 1% lower.

“Infosys has been a W&G programme 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.

An Infosys spokesperson clarified that these jobs are not being cut and that the employees will be reallocated to other projects.

While Infosys has not specified the impact of the cancellation, market analysts peg it at around $40 million. The loss of the five-year 300-million pound RBS deal could force Infosys to further downgrade revenue guidance for 2016-17.