Infosys reported a sharp decline in headcount during the March quarter, with its employee base falling by 8,440 to 3,28,594. This comes after six consecutive quarters of workforce expansion, signalling a shift amid softer demand conditions.
Attrition for the quarter also edged higher to 12.6% on a last-twelve-month basis, compared to 12.3% in the previous quarter.
Addressing the decline, Chief Financial Officer Jayesh Sanghrajka said, “Our headcount sequentially has gone down, but on a YoY basis it has gone up by 5,000 people. There’s always some quarterly seasonality. Headcount is a function of utilisation and the volumes we see. This quarter the volumes were softer, plus the freshers in the system had to be accounted for.”
Across peers, hiring trends remained mixed. Tata Consultancy Services added 2,356 employees during the quarter, marking its first increase in three quarters, while HCLTech added 802 employees. Wipro saw a marginal increase of 135 employees, whereas Tech Mahindra reported a decline of around 1,993 employees.
Despite the near-term decline, Infosys has maintained its focus on fresher hiring. CEO Salil Parekh had earlier indicated plans to hire 20,000 graduates in FY27, after onboarding a similar number in FY26.
Also Read: Infosys Q4 Results: FY27 revenue growth seen between 1.5% to 3.5%; Margins between 20% to 22%
Separately, in its Q4 earnings, Infosys guided for FY27 revenue growth of 1.5% to 3.5% in constant currency terms, with EBIT margins expected between 20% and 22%.
The company reported a net profit of ₹8,501 crore for the March quarter, while revenue growth remained subdued, reflecting the softer demand environment.