India’s four largest IT services firms—Tata Consultancy Services (TCS), Infosys, Wipro, and HCLTech—have collectively reduced their headcount by more than 42,000 employees between 2023 and mid-2025.
The decline reflects a shift in hiring strategies, evolving client demands, and broader economic pressures affecting the global technology sector.
According to company disclosures and industry reports, Wipro recorded the steepest drop, cutting 25,200 jobs since 2023.
Infosys followed with a reduction of 12,506 employees, while TCS trimmed its workforce by 2,249 roles.
HCLTech, in contrast, saw a minimal reduction of 287 positions, maintaining relative stability in its staffing levels.
TCS, Infosys, Wipro, HCLTech: Attrition and Utilization Trends Shape Hiring Decisions
Attrition rates have played a key role in shaping workforce numbers. As of June 2025, Wipro’s attrition rate stood at 15.1%, the highest among the four firms.
Infosys reported 14.4%, while TCS recorded 13.8%, marking a year-on-year increase. HCLTech, however, maintained a flat attrition rate, indicating more stable employee retention.
Executives across these companies have cited skill mismatches, overhiring during the post-pandemic boom, and slower revenue growth as reasons for recalibrating headcount.
TCS CEO K Krithivasan noted plans to cut over 12,000 roles globally, while continuing to invest in “high-quality talent” through targeted hiring and training.
Economic Headwinds and Demand Softening
The headcount reduction comes amid subdued demand from key markets such as the United States and Europe, which account for a significant portion of revenue for Indian IT firms.
Rising interest rates, cautious client spending, and geopolitical uncertainties have led to slower growth and lower discretionary IT budgets.
In FY22, the top IT firms had aggressively hired over 240,000 employees, driven by high attrition and digital transformation needs.
However, as attrition normalized and demand softened, companies began focusing on utilization and productivity rather than expanding their workforce.
Infosys, for instance, increased its utilization rate from 77% to 82%, with further headroom to reach 85%, reducing the need for additional hiring.
TCS also emphasized fresher hiring and lateral hiring recalibration, aiming to optimize its existing talent pool.
TCS, Infosys, Wipro, HCLTech Current Headcount Snapshot
As of June 30, 2025:
- TCS employed 613,069 people
- Infosys had 323,788 employees
- Wipro reported a workforce of 233,232
- HCLTech maintained 223,151 employees
These figures reflect a strategic shift toward leaner operations, with companies prioritizing cost efficiency, skill alignment, and digital readiness.
Focus on Quality Over Quantity
While headcount reductions may raise concerns about job security, industry analysts suggest that the focus is shifting toward quality hiring, reskilling, and automation-driven productivity.
Companies are expected to continue hiring selectively, especially in areas like AI, cloud computing, and cybersecurity, where demand remains strong.
The long-term outlook for India’s IT sector remains cautiously optimistic, with firms adapting to changing client needs and global trends.
However, workforce strategies will likely remain conservative until demand conditions improve.
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