Tech Mahindra Sees Employee Count Decline by 1,757 in Q4
Click to start listening
Synopsis
Tech Mahindra has reported a decrease in its employee count for the second consecutive quarter, with a reduction of 1,757 employees. Despite this, the company saw a year-on-year increase in its workforce, amid cautious hiring strategies due to the uncertain demand in the IT sector.
Key Takeaways
- Tech Mahindra's workforce decreased by 1,757 employees.
- Year-on-year growth of 3,276 employees reflects a 2.3% increase.
- Attrition rate rose to 11.8% from 11.2%.
- Hiring targets for FY26 remain unspecified due to demand uncertainty.
- Competitors show signs of recovery with increased hiring.
New Delhi, April 24 (NationPress) Tech Mahindra announced on Thursday a decrease in its workforce for the second consecutive quarter.
In the quarter ending March 31, 2024, the company experienced a reduction of 1,757 employees.
This decline is occurring in a challenging business climate and amid cautious hiring practices.
Despite the quarterly decrease, Tech Mahindra has added 3,276 employees year-on-year, reflecting a 2.3 percent increase.
At the conclusion of FY25, the company’s total employee count reached 148,731.
Additionally, Tech Mahindra noted a slight uptick in attrition rates.
The last twelve-month (LTM) attrition rate rose to 11.8 percent, up from 11.2 percent in the previous quarter.
For FY24, Tech Mahindra set a goal to hire over 6,000 fresh graduates, successfully recruiting 6,100 campus graduates.
However, for FY26, the company has refrained from disclosing specific hiring targets due to the uncertain demand in the IT industry.
"The number of new hires this year will depend on how demand evolves. Currently, the visibility is unclear, but we hope for improvements over time," stated Tech Mahindra CEO Mohit Joshi during the announcement of the company's results.
While Tech Mahindra exercises caution, its larger competitors in the Indian IT sector are showing signs of recovery.
Firms like TCS, Infosys, HCLTech, and Wipro, which faced significant hiring reductions in FY24, have collectively added approximately 9,400 employees in FY25.
In FY24, these four leading IT companies did not replace departing employees, resulting in a total job cut of 63,759 positions.
This trend reflects the broader slowdown in the sector, which is driven by weak revenue growth.
Nevertheless, the beginning of FY25 appears more promising for some companies.
TCS hired 6,433 employees, Infosys added 6,388, and Wipro increased its workforce by 732.
Only HCLTech continued its downsizing, cutting about 4,000 jobs.
