Tech Mahindra, a leading global IT services provider, has reported a reduction of 1,757 employees in the fourth quarter of FY25, marking the second consecutive quarter of workforce decline.
This development comes amid a challenging business environment and cautious hiring strategies, reflecting broader trends in the IT sector.
Tech Mahindra Q4FY25: Workforce Trends and Attrition
Despite the quarterly decline, Tech Mahindra added 3,276 employees on a year-on-year basis, representing a 2.3% increase in total headcount.
By the end of FY25, the company’s workforce stood at 148,731 employees.
However, the last twelve-month (LTM) attrition rate rose to 11.8%, up from 11.2% in the previous quarter.
This increase in attrition highlights the challenges faced by the company in retaining talent amid industry-wide uncertainties.
Hiring Strategies and Freshers Recruitment
Tech Mahindra had set a target of hiring over 6,000 freshers in FY24 and successfully recruited 6,100 campus graduates.
However, the company has not disclosed specific hiring targets for FY26, citing subdued demand visibility in the IT sector.
CEO Mohit Joshi stated, “The number of new hires this year will depend on how demand shapes up. Visibility is unclear right now, but we hope it will improve with time”.
Tech Mahindra Financial Performance and Market Context
The headcount reduction aligns with Tech Mahindra’s cautious approach to managing costs and optimizing operations.
The company reported a profit after tax (PAT) of ₹4,252 crore for FY25, reflecting an 80.3% year-on-year growth.
Despite this financial success, the IT sector continues to face challenges, including weak revenue growth and fluctuating demand.
In comparison, other major Indian IT firms such as TCS, Infosys, and Wipro have shown signs of recovery, collectively adding approximately 9,400 employees in FY25.
These companies had previously experienced significant workforce reductions in FY24, shedding a total of 63,759 jobs.
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