Shocking decrease in IT companies employees headcount raises eyebrows

Indian top IT companies TCS, Infosys, HCL reported their Q2 FY24 results this week. Profits and earnings are slightly better but the main trend in all these companies is a significant drop in head count. But new hiring is expected and the estimates are yet to be announced.

TCS:

There is a decline of 6,333 people in TCS. There were 615,318 employees during the quarter but there are only 608,985 as of September. Last year on annual basis, there was a decrease of 7,186 which also involved recalibrating the recruitment targets. Hechar Milind Lakkad, the company's chief said that they are recruiting bright freshers and are investing in training them with the right skills. He also clarified that their goal is to maximize the results.

Infosys:

Infosys has 7,530 head count but the employees got reduced. Infosys Quarterly Results showcased 3,36,294 in the company whereas the count is

3,28,764 by September 2023. When compared to last year's quarter, the number of employees has decreased. CFO Nilanjan Roy said that they are planning to conduct drives and the company has already recruited 50,000 freshers.

HCL:

Though the giant gave the announcement of the new rules, HCL's head count got declined. In Q1, the Head count decreased by 2,506 and again got down by 2,299 in Q2. The total number of employees is 2,21,139 and this declined in the second quarter in a row. CMD Vijayakumar said that most of the people hired in the last 18 months are feshers are ready which is why they didn't back fill the attrition.

Sector View:

The top three major IT companies have released their results for the appointment and there is a slight decrease in the Q2 quarter. TCS hired 9,840 people during the quarter, Infosys hired 10,032 employees whereas HCL Tech gave employment to 8,382 people. These three companies combined increased the head count to 28,254. In the same quarter the net employee addition of companies was at 16,162.

- by Vishnupriya