Infosys, the tech giant, reported a decrease of 7,530 employees in the quarter ending September, according to its financial results for the second quarter. This marks the sixth consecutive quarter of reduced hiring and the second consecutive quarter of declining workforce strength. In the previous quarter (April to June), the company’s headcount had decreased by 6,940 employees. By the end of the September quarter, Infosys had a total of 3,28,764 employees, down from 3,36,294 in the previous quarter.
Infosys’ Employee Attrition, Wage Hikes, and Assurance of Safety – Key Highlights from Q2 2023
The voluntary attrition rate, which measures the rate at which employees leave the organization either voluntarily or involuntarily, has slowed down to 14.6%, compared to 17.3% in the April to June quarter. Over 70% of employees have returned to the company’s campuses.
Infosys announced that wage hikes, typically rolled out from April for employees below senior management, were deferred but will be effective from November 2023.
Regarding the situation in Israel, CEO Parekh assured that the company’s employees there are safe and that there is a plan to support them in case of further developments.
TCS Reports Workforce Reduction and IT Sector Hiring Trends in Q2 2023
Tata Consultancy Services (TCS), a peer of Infosys, also reported a decrease in its overall headcount by more than 6,300 employees in the same quarter. However, it noted that its Gen-AI-ready workforce exceeded 100,000.
These hiring numbers align with analyst expectations, as the IT sector, especially the top five IT services firms, was anticipated to continue to experience reduced growth in the September quarter due to soft demand and excessive hiring during the COVID-19 pandemic.
Sunil C, CEO of TeamLease Digital, explained that the employee requirements of tech services firms are still minimal, with most hiring focused on replacing critical talent. Long-term transformation projects have been broken down into smaller critical projects that immediately impact productivity, revenue growth, or customer experience, resulting in selective and subdued hiring. Organizations are currently prioritizing short-term return on investment through measures such as cost reduction, enhanced utilization, and automation.
