IT services firm Tech Mahindra reported a net employee decline of 795 sequentially for the fourth quarter ended March 31, in line with the larger industry-wide trend of slowdown in hiring amid macroeconomic challenges and demand uncertainties.
FY24 marks the second ever full year decline in headcount for Tech Mahindra, which was down by 6,945. The IT company had previously reported a full year headcount drop in FY18.
The total headcount for Q4 was 145,455. In the last quarter, Tech Mahindra headcount went down by 4,354 employees.
The attrition rate dropped to 1o percent in Q4 from 11 percent in Q3, continuing the trend of declining attrition rates since the start of fiscal year 2023.
Tech Mahindra will continue hire freshers in FY25, with a target of adding about 6,000 freshers. This was a different narrative from its peers like Tata Consultancy Services (TCS), Infosys and Wipro, who shied away from sharing a fresher addition target for the ongoing new fiscal year.
In fact, as a part of Tech Mahindra's strategy for business turnaround by 2027, the company will be focussing on building it early career and fresher workforce, to train and deploy them. This will in turn help with margin improvement, CFO Rohit Anand shared during the analyst call on April 25.
Not just Tech Mahindra, rivals TCS, Infosys and Wipro too reported full year headcount decline in FY24, historically the first time for TCS and Infosys.
TCS full year headcount was down by 13,249, Infosys’ headcount dropped by 25,994, while Wipro added 24,516 fewer employees in FY24.
Also read: Tech Mahindra Q4 results: Net profit declines 40.9% YoY to Rs 661 crore, revenue drops by 6.2%
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