IIT Bombay Graduate Rejects Internship Over 90% Pay Cut Proposal

MUMBAI – An Indian Institute of Technology (IIT) Bombay graduate has sparked a widespread online discussion after publicizing his decision to reject a job offer that involved a 90% salary reduction. Soham Nayak, an alumnus of the premier engineering institution, took to social media to detail his experience, noting that a recruiter had attempted to reclassify his professional responsibilities as an "internship" to justify the lower pay.

The incident, which gained traction on June 11, 2026, highlights growing concerns among young professionals regarding corporate hiring practices in a competitive job market. Nayak, who had been searching for new opportunities for over two weeks, stated that the offer was presented following an inquiry into his current salary, which the recruiter subsequently used as a benchmark to propose a significant devaluation of his professional output.

Professional Valuation and the 'Internship' Trap

According to Nayak, the human resources representative proposed a three-to-six-month "internship period" prior to a full-time role, despite the nature of the work remaining identical to his previous professional experience. The proposal sought to cut his compensation by 90%, a move the candidate described as an attempt to reduce corporate liabilities by relabeling experienced work as entry-level training.

“Not a junior role. Not a different stack. The same work I ship every day, relabeled as an internship so it costs 90% less,” Nayak wrote in his public account of the interaction. By declining the offer, Nayak emphasized that he chose to maintain his market value rather than succumb to immediate financial pressure.

Industry Reactions and Hiring Trends

The rejection has prompted mixed reactions from social media users and industry observers. While some commenters argued that the current competitive landscape necessitates accepting whatever compensation is available, others commended the graduate for drawing a firm boundary.

Critics of such hiring models argue that companies are increasingly using "internship" or "probation" labels to bypass standard salary structures. Experts note that while probation is a standard component of many contracts, the practice of offering a fraction of the expected industry standard for specialized roles is being viewed by many as an exploitative tactic.

Official Context and Market Realities

There has been no official statement from the company involved, as the identity of the recruiter remains undisclosed. However, the discourse surrounding this event comes amidst broader reports of shifting recruitment strategies in the Indian technology sector. While major firms have faced scrutiny for revoking job offers due to internal restructuring—such as recent reports involving Oracle revoking offers to students at various IITs and NITs—this specific incident underscores a different challenge: the attempt to lower compensation levels through role reclassification.

Why It Matters

This incident serves as a significant case study for job seekers, particularly in the tech sector, regarding the importance of salary transparency and the refusal of contracts that undervalue professional expertise. It highlights the psychological and financial pressures faced by unemployed graduates and raises questions about whether companies are leveraging current market volatility to lower their operational costs at the expense of skilled talent.

Key Facts at a Glance

• The Proposal: A 90% pay reduction via a "3-6 month internship" classification.

• The Role: A senior/experienced software development position, not an entry-level trainee role.

• Candidate Stance: The graduate rejected the offer, citing the risk of permanently lowering his perceived professional market value.

• Wider Context: The story reflects ongoing concerns regarding job market instability and the ethics of corporate cost-cutting measures.

FAQ

1. Why did the graduate reject the offer?

Soham Nayak rejected the offer because he felt the role was essentially the same work he performs professionally, and he believed that accepting one-tenth of his value would establish a poor precedent for his future career compensation.

2. Is this a common practice in the tech industry?

While probationary periods are standard, the practice of "relabeling" high-level work as internships to drastically reduce pay is widely criticized as an attempt to cut labor costs unfairly.

3. What are the broader concerns for job seekers?

The incident highlights the struggle between maintaining professional worth and the pressure to find employment in a challenging market, prompting discussions on where to draw the line during salary negotiations.

Source: Hindustan Times Trending, Economic Times, X (formerly Twitter)