IT services giant Infosys reported a plunge in headcount by 1,908 in the first quarter ended June 30. This is the sixth consecutive quarter of headcount decline for the company.
This is likely driven Infosys’ changing hiring model as it looks to focus more on improving utilisation rate.
The total headcount for Q1FY25 stood at 315,332, down from 336,294 in Q1FY24. On a YoY basis, overall headcount reduced by 20,962.
The attrition rate for Q1 on the last twelve-month basis saw marginal increase to 12.7 percent, from 12.6 percent in the previous quarter.
Speaking at the company's Q1 earnings conference, Jayesh Sanghrajka, CFO, Infosys said, "Last multiple quarters we have moved to agile hiring base. We hire freshers from on and off the campus. This quarter we had a 2000 persons net decline, which was lower than the previous quarters. Our utilisation is already at 85%, so we have little headroom now left. As we start seeing growth we will look at hiring."
"We are looking to hire 15,000-20,000 freshers this year depending on how we see the growth," he added.
In Q1, rival Tata Consultancy Services (TCS) added 5,452 employees on a net basis, reversing three straight quarters of decline. The overall headcount, however, dropped 1,759 sequentially as compared to the March period. Meanwhile, HCLTech's headcount declined sequentially by 8,080 in Q1FY25.
LTIMindtree was an exception, which added around 284 employees sequentially in Q1.
Also read: Infosys Q1 Results: FY25 revenue growth guidance raised to 3-4 %; net profit beat estimates
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