For the first time in almost 23 years, Infosys saw a drop in full-year headcount. A difference of 25,994 has been recorded in the headcount during the fiscal year 2023–2024.
With 317,240 employees for the entire fiscal year, fewer people worked than in the company in the prior fiscal year by 7.5%.
Infosys Sees A Drop in Headcount in 2023-24
Infosys’s CFO, Jayesh Sanghrajka, emphasized the company’s improved utilisation rate, which went from 77% to 82%.
Sanghrajka ascribed the decline in headcount to modifications in the growth environment as well as a decline in attrition.
As per Sanghrajka, “Our utilisation rate has improved from 77 per cent utilisation including trainees in the beginning of the year. The growth environment was also very different at that point so we had guided differently.”
He also said, “We had to realign some of those factors as the growth environment changed. Our utilisation has changed to 82 per cent now. Our attrition has also come down significantly. That’s the reason you see a net headcount reduction.”
Infosys reduced the number of new hires by 5,423 throughout the quarter.
Infosys’ Changed Hiring Model: No More Freshers
The organization currently hires more than half of freshmen off campus and fewer than half on campus, having drastically changed its hiring strategy. For the January–March quarter, Infosys recorded a 30% increase in net profit, which came to Rs 7,969 crore.
About the hiring model, Sanghrajka said, “We have changed our hiring model significantly. We no longer hire all the freshers from campus. We hire less than half of them from campus and more than half of them off campus.”
Compared to the net profit of Rs 6,128 crore recorded in the same quarter previous year, this represents a substantial increase. Despite the reduction in staff, Infosys appears to have performed well, according to the financial results.
The company’s increased net profit is a sign of efficient operations and competent management.
Infosys has demonstrated its capacity to react to shifting market circumstances through strategic modifications to its hiring process.
