Tech hiring slowdown: TCS, HCL, Infosys report significant workforce reductions

Tech Hiring: Indian IT giants Tata Consultancy Services (TCS), Infosys, and HCL Technologies have recently announced their Q2 FY24 results, and a common trend across all these companies is a significant reduction in their workforce.

TCS Hiring

TCS reported a net decrease of 6,333 employees on a quarterly basis, bringing its net employee headcount to 608,985 as of September 30. This marked a drop from 615,318 in the previous quarter. On a yearly basis, TCS's headcount in Q2FY23 was 616,171, indicating a decline of 7,186 employees in Q2FY24.

The Chief Human Resources Officer (CHRO) attributed this to a recalibration of hiring targets. TCS has been proactively hiring and training fresh talent to meet its needs, reducing attrition and increasing productivity.

Also read/watch - Tech layoff 2023: Qualcomm continues to cut jobs amid weak demand

Infosys Hiring

Infosys witnessed a net decrease of 7,530 employees in its headcount compared to the previous quarter, leaving it with 328,764 employees as of September 2023. This is a decrease from the 336,294 employees it had in the previous quarter. Additionally, when compared to the same quarter the previous year, the headcount is down by 16,454.

Infosys has slowed down on hiring and postponed mass recruitment drives on Indian college campuses due to its substantial bench size, as explained by the CFO.

HCL Tech Hiring

HCL Technologies also saw a decline in net headcount addition, with a reduction of 2,299 employees in Q2 FY24. The company's total headcount stood at 221,139, marking the second consecutive quarter of a declining headcount. The CEO and MD clarified that this reduction was due to the readiness of freshers in the workforce to be deployed on projects.

Also read/watch - Tech Jobs: Infosys postpones campus recruitment for this year

IT Sector Overview

Overall, these three major IT companies have reported tepid hiring trends for Q2, in contrast to the previous year when they collectively hired a significant number of employees. In Q2 2022, TCS hired 9,840, Infosys hired 10,032, and HCLTech hired 8,382 people, resulting in a combined headcount growth of 28,254.

In contrast, for the quarter ending in September 2023, the net employee addition across these three companies is negative, with a total reduction of 16,162 employees.