TCS, Infosys, HCLTech, and Wipro cut over 21,000 jobs in Q2

The top four IT companies in the country saw a total of 21,213 employees less in Q2 of FY24, compared to their Q1 headcount.

TCS saw its headcount decline by 6,333, the steepest fall at least in the last five years. Infosys, the second-largest IT company, saw its headcount decline by 7,530 employees. While headcount at HCLTech declined by 2,299, Wipro saw a fall of 5,051 to 244,707. In the June ended quarter, Wipro had a total employee headcount of 2,49,758.

Wipro saw its attrition falling to 15.5% in the September quarter, from 17.3% in the June quarter. Large peers like TCS, Infosys and HCLTech also saw their attrition fall to 14.9%, 14.9% and 14.2%, respectively.

Utilisation for Wipro has improved to 84.5% in the September quarter. The company said it is paying a standard 80% variable pay to its employees in Q2. It also indicated that they might not go for campus hiring this year. TCS, Infosys and HCLTech also saw their employee utilisation ratio going up as the companies are focussed on growing their margins.

Wipro also announced the merger of its wholly-owned subsidiaries — Wipro HR Services India, Wipro Overseas IT Services, Wipro Technology Product Services (formerly known as Encore Theme Technologies), Wipro Trademarks Holding and Wipro VLSI Design Services India — with Wipro Limited.

The company said that the purpose for merging is to consolidate business operations, enable synergies of operations, reduce overheads including administrative, managerial and other expenditures, ensure optimised legal entity structure, and significantly cut multiplicity of legal and regulatory compliances. Financial Express