New Delhi, April 24 Tech Mahindra on Thursday reported a drop in its employee count for the second quarter in a row.
In the quarter ended March 31, 2024, the company's workforce shrank by 1,757 employees.
This decline comes amid a challenging business environment and cautious hiring strategies.
Despite the quarterly fall, Tech Mahindra added 3,276 employees on a year-on-year basis, marking a 2.3 per cent increase.
The company also saw a slight rise in attrition.
The last twelve-month (LTM) attrition rate increased to 11.8 per cent, up from 11.2 per cent in the previous quarter.
In FY24, Tech Mahindra had aimed to hire over 6,000 freshers and managed to recruit 6,100 campus graduates.
However, for FY26, the company has not shared any specific hiring targets for freshers.
The reason is the uncertain demand situation in the IT sector.
"The number of new hires this year will depend on how demand shapes up. Right now, the visibility is unclear, but we hope it will improve with time," Tech Mahindra CEO Mohit Joshi told the media after announcing the company’s results.
While Tech Mahindra is being cautious, its bigger rivals in the Indian IT sector are showing signs of recovery.
Companies like TCS, Infosys, HCLTech, and Wipro, which had seen a major drop in hiring during FY24, have together added around 9,400 employees in FY25.
In FY24, these top four IT firms did not replace employees who left and ended up cutting a total of 63,759 jobs.
This reflected the broader slowdown in the sector, driven by weak revenue growth.
However, the start of FY25 looks better for some of them.
TCS hired 6,433 employees, Infosys added 6,388, and Wipro increased its headcount by 732.
Only HCLTech continued to reduce its staff, cutting around 4,000 positions.
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