Sunday, February 9, 2025

Top 5 IT Firms Report Job Cuts in Q3FY25 After Hiring Surge

India’s top five IT services companies—Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, and Tech Mahindra—reported job cuts of 2,587 employees in the third quarter of FY25 (Q3FY25), reflecting a seasonal slowdown typical for the industry.

This comes after a strong hiring boost in the previous quarter, suggesting a cautious recovery after the challenges of the past few years.

Hiring Trends in Q3FY25 and Job Cuts

Q3FY25 is traditionally a weaker period for India’s IT sector due to seasonality factors, including employee furloughs and reduced hiring.

While the quarter showed a decrease in the workforce across most major IT firms, it is important to note that Q2FY25 had been a strong quarter for recruitment, with a total of 15,033 new employees added.

This highlights the cyclical nature of hiring within the sector.

  • TCS: TCS lost around 5,370 employees in Q3FY25, despite continuing to see strong deal momentum. The company had hired more in Q1 and Q2, expecting a faster revival, but anticipated a seasonally weak Q32.
  • Infosys: Infosys saw robust recruitment of over 5,000 employees in Q3, bringing its total headcount to 323,000. The company plans to hire over 20,000 freshers in FY261.
  • HCLTech: HCLTech added 2,134 employees in Q3, bringing its total workforce to 220,755.
  • Wipro: Wipro shed 1,157 employees in Q3, attributing the drop to seasonal factors.
  • Tech Mahindra: Tech Mahindra reported a sequential decline of about 3,785 employees in Q3, focusing on optimizing capacity under new management.

Nine-Month Recovery and Attrition Levels

On a nine-month (9MFY25) basis, these services exporters added 10,412 employees, marking a cautious revival after shedding over 57,608 employees during the same period last year.

This recovery is a sharp contrast to the same period in FY24, when over 57,600 employees were lost.

All five companies reported a sequential increase in their attrition levels on a last twelve-month (LTM) basis.

The reasons for attrition vary, including competitive job offers, evolving work preferences, and higher employee mobility in the post-pandemic landscape.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus