According to recent reports, the top three Indian IT companies, TCS, Infosys, and Wipro, have collectively reported a significant drop in their employee count for the first time in 20 years. The total loss in employee count for the full fiscal year stands at 63,759.
Breakdown of Employee Loss
- Wipro reported a drop of 6,180 employees in Q4, with a total employee strength drop of 24,516 for the full fiscal year. Wipro’s employee count at the end of FY24 was 2,34,054, which is 9.1% lower than the previous year.
- TCS saw a drop of 13,249 employees in fiscal 2024, including a loss of 1,759 employees in Q4.
- Infosys experienced a headcount reduction of 25,994 employees, with a loss of 5,423 employees in Q4. The company’s employee count at the end of FY24 was 3,17,240, a 7.5% decrease from the previous year.
Reasons for Employee Loss
The reasons behind this drop in employee count can be attributed to various factors, including changes in hiring models, increased utilization rates, and low attrition rates. Infosys CFO Jayesh Sanghrajka mentioned that the company has shifted to a more agile model of campus hiring and currently has a utilization rate of 82%. With low attrition rates, the company has not yet decided on campus hiring numbers.
Impact on the Indian IT Sector
The decline in employee count across major Indian IT companies is a significant development for the industry. It indicates a shift in hiring strategies and a focus on leveraging existing employee strength rather than adding more employees. This trend may have implications for the overall growth and performance of the Indian IT sector in the coming years.