Indian IT Majors Lost Over 63,000 Employees In FY24 TCS, Infosys and Wipro in their recently announced January-March quarter results for Q4FY24 reported a full-year decrease in their total employee headcount
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India's information technology (IT) giants Tata Consultancy Services (TCS), Infosys and Wipro in their recently announced January-March quarter results for Q4FY24 reported a full-year decrease in their total employee headcount. The three software services companies recorded a drop of 63,759 in headcount numbers during FY24.
TCS
Despite a nine per cent rise in net profit at INR 12,434 crore in fourth quarter, compared to INR 11,392 crore in the corresponding period last year, Tata Consultancy Services (TCS), headcount declined by 1,759 employees in January-March 2024, reporting a drop for the third consecutive quarter. TCS' full year headcount in FY24 was down by 13,249. The IT major's revenue from operations in the fourth quarter rose 3.5 per cent at INR 61,237 crore.
Infosys
The net profit rose to 30 per cent to INR 7,975 crore in the March quarter, compared to INR 6,134 crore in the corresponding period last year. Total revenue for the quarter under review stood at INR 37,923 crore. In FY24, the company reported a headcount drop by 25,994 and the total workforce stood at 317,240 as per reports. On a sequential basis, Infosys reported a drop for the fifth consecutive quarter with 5,423 less employees.
"Our utilisation has gone up to 82-83 per cent and our attrition has also come down significantly. That is the reason for net headcount reduction," Infosys CFO Jayesh Sanghrajka said. The company registered an attrition of 12.6 per cent.
"Hiring model has changed in last few years. We are now on more agile model of campus hiring. At this point of time we are at 82 per cent utilisation. We still have headroom over that and attrition is very low so we have not decided on campus hiring numbers at this point of time," Sanghrajka said.
Wipro
Wipro reported a decline of eight per cent in consolidated net profit at INR 2,835 crore, compared to INR 3,074.5 crore in the corresponding period last year. Wipro's revenue from operations for the March quarter dropped four per cent to INR 22,208.3 crore.
The FY24 headcount dropped by 24,516 employees and the total workforce stood at 2,34,054 employees at the end of March 31, 2024. In the March quarter, the headcount dropped by 6,180 employees. Wipro's attrition rate remained flat at 14.2 per cent on the last-twelve-month (LTM) basis.
Not only Indian IT majors, tech companies globally seem to be continuing layoffs since the beginning of 2024, with Google asking its staff to brace for more layoffs. Meta announced several rounds of layoffs in which thousands of employees lost their jobs in the past few months as part of Mark Zuckerberg's year of efficiency mandate. As per reports, in February, over 15,000 employees were laid off by at least 74 major tech companies.
