India’s largest IT services company Tata Consultancy Services (TCS) on January 11 saw its headcount plunge by 5,680 on a net basis in the third quarter of FY24; coming in line with the company’s commentary last quarter on expecting further shrinkage in headcount.
Meanwhile, peer Infosys lost 6,101 employees in Q3, its fourth consecutive quarter of declining headcount.
This is the second consecutive quarter for TCS seeing a headcount decline. In Q2, headcount had dropped by 6,333 employees QoQ.
The company’s total employee base as of December 31, stands at 603,305. TCS’ attrition rate has further dropped to 13.3%, down from 14.9% in Q2.
Milind Lakkad, Chief HR Officer said this is comfortable range of attrition for the company.
"13.3 percent range for attrition is very satisfying to see. This has come down to our comfort range. Now whether it will come down from there…I expect it to come down further,” he said addressing the media at the conference.
TCS had earlier asked employees to work from office five days a week, shifting from its hybrid model of three-day work from office.
In a statement, Lakkad said, “The vibrancy and energy levels in our offices are increasing as more and more of our employees are back in the offices. We expect to be back to our normal operating mode by the end of the current fiscal year.”
“We are committed to hiring from college campuses and growing talent organically. We have commenced our campus hiring process for the next year and see tremendous excitement among freshers to join TCS,” he added.
TCS had earlier said that it plans to add 40,000 freshers in FY24.
Lakkad had earlier said that the company had earlier heavily invested in getting fresh talent for nearly 18 months, and now that has started to pay off. paying off, so they are not looking at backfilling attrition immediately, which too has come down.
TCS reported its Q3FY24 earning on January 11. Net profit grew 2% YoY coming at Rs 11,058 crore. Consolidated revenue was up by 4% YoY reaching Rs 60,583 crore.
Ebit margin too improved 50 bps to 25%, beating Moneycontrol’s estimates.
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