Infosys' Workforce Drops By 7,530 Employees In Q2 FY24

Infosys reported a decline in its employee headcount during the second quarter of FY24. The company reported a decrease of 7,530 employees, bringing their total workforce to 328,764. 

This dip follows a trend of reduced hiring activities, with Infosys reporting a drop of 6,940 employees in the preceding quarter. This marks a significant departure from the net hiring of 10,032 employees during the same quarter in the previous year.

One important aspect of Infosys's announcement is the mention of a substantial fresher bench, referring to a pool of entry-level talent ready for deployment. As a result, the company currently does not see the need to engage in campus recruitment activities this year, a decision that differs from their typical practices.

In addition to the reduced headcount, Infosys also disclosed that attrition for the quarter stood at 14.6 per cent, marking a decrease from the 17.3 per cent reported in the previous quarter. As part of their response to the evolving industry landscape, Infosys revealed plans to provide wage hikes to its employees starting from 1 November.

The challenges facing Infosys and other IT companies in India reflect broader trends within the industry. Factors such as macroeconomic headwinds and shifts in client spending on technology services are contributing to the slow growth that these companies are experiencing. 

On Wednesday, Tata Consultancy Services (TCS) reported a net decrease of 6,333 employees during the same period, marking its most substantial drop in employee numbers since the 2008 global financial crisis.

This situation isn't unique to Infosys and TCS. Major global IT players are also navigating a landscape characterised by sluggish growth. For instance, Accenture recently reported a headcount growth of just 951 employees in their fourth quarter while offering a cautious two to five per cent revenue growth projection for FY24.

Also Read: Infosys Q2 FY24: Net Profit Rises 3.2%, Guidance Revised