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Layoffs
2 min. Read
|Jan 20, 2025 12:18 PM

Top 5 IT Firms Report Job Cuts in Q3FY25 After Hiring Surge

Sahiba Sharma
By Sahiba Sharma
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India’s top five IT services companies—Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, and Tech Mahindra—reported job cuts of 2,587 employees in the third quarter of FY25 (Q3FY25), reflecting a seasonal slowdown typical for the industry.

This comes after a strong hiring boost in the previous quarter, suggesting a cautious recovery after the challenges of the past few years.

Hiring Trends in Q3FY25 and Job Cuts

Q3FY25 is traditionally a weaker period for India’s IT sector due to seasonality factors, including employee furloughs and reduced hiring.

While the quarter showed a decrease in the workforce across most major IT firms, it is important to note that Q2FY25 had been a strong quarter for recruitment, with a total of 15,033 new employees added.

This highlights the cyclical nature of hiring within the sector.

  • TCS: TCS lost around 5,370 employees in Q3FY25, despite continuing to see strong deal momentum. The company had hired more in Q1 and Q2, expecting a faster revival, but anticipated a seasonally weak Q32.
  • Infosys: Infosys saw robust recruitment of over 5,000 employees in Q3, bringing its total headcount to 323,000. The company plans to hire over 20,000 freshers in FY261.
  • HCLTech: HCLTech added 2,134 employees in Q3, bringing its total workforce to 220,755.
  • Wipro: Wipro shed 1,157 employees in Q3, attributing the drop to seasonal factors.
  • Tech Mahindra: Tech Mahindra reported a sequential decline of about 3,785 employees in Q3, focusing on optimizing capacity under new management.

Nine-Month Recovery and Attrition Levels

On a nine-month (9MFY25) basis, these services exporters added 10,412 employees, marking a cautious revival after shedding over 57,608 employees during the same period last year.

This recovery is a sharp contrast to the same period in FY24, when over 57,600 employees were lost.

All five companies reported a sequential increase in their attrition levels on a last twelve-month (LTM) basis.

The reasons for attrition vary, including competitive job offers, evolving work preferences, and higher employee mobility in the post-pandemic landscape.

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