IT Hiring Holds Up in FY26 Despite TCS Job Cuts and Global Uncertainty

Hiring trends among India’s largest IT services companies remain resilient in the current financial year, even as Tata Consultancy Services (TCS) continues its large-scale restructuring exercise.

Data compiled by media reports shows that the top six IT firms together shed fewer than 1,500 jobs on a net basis in the first nine months of FY26, despite significant headcount reductions at TCS and Tech Mahindra.

The overall numbers were cushioned by steady hiring at Infosys, Wipro, HCL Technologies, and LTIMindtree. Infosys led the sector in fresh hiring, adding 13,456 employees so far this year.

Speaking at the post-earnings press conference, Infosys Managing Director and CEO Salil Parekh said the hiring reflects confidence in market demand and future growth prospects.

Infosys Chief Financial Officer Jayesh Sanghrajka said the company is on track to meet its earlier guidance of hiring 20,000 freshers in FY26.

Around 18,000 freshers have already been onboarded, many of whom are currently undergoing training, indicating continued investment in long-term capacity building.

Wipro also reported strong additions, with over 8,500 employees added during the year. The increase was driven primarily by the completion of its acquisition of Digital Transformation Solutions in December 2025 and a long-term engagement with the UK-based Phoenix Group.

However, Wipro CEO Srini Pallia cautioned that uncertainty in discretionary spending, particularly among global clients, could weigh on future hiring decisions.

Across the sector, hiring momentum has softened compared to the mass recruitment seen in earlier years, largely due to slowing demand from US clients. Policy uncertainty and trade-related pressures in the US have led many enterprises to delay or reduce IT spending.

TCS headcount decline also requires a nuanced view. While the company reported a net reduction of over 25,000 employees in the first three quarters of FY26, this figure includes voluntary exits.

In the October–December quarter, TCS released around 1,800 employees as part of its restructuring and AI-led optimisation efforts, with redeployment remaining the preferred option wherever possible.

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