Technology

TCS experiences first drop in net headcount in 20 years

TCS Reports 13,249 Employee Drop in Headcount during FY24

New Delhi, April 12 (IANS) Tata Consultancy Services (TCS) disclosed that its headcount decreased by 13,249 employees year-on-year during the financial year 2023-24 (FY24). This marks the first time in 19 years that the leading IT software company has seen a drop in headcount. The company closed FY24 with 601,546 employees, according to TCS’s stock exchange filing.

The fourth quarter of FY24 (January to March) saw a decrease of 1,759 employees in TCS, continuing the trend of declining headcount for the third consecutive quarter. In the previous quarter, the number of employees dropped by 5,680 employees quarter-on-quarter, and in Q2, the company witnessed a net reduction of 6,333 employees.

Despite the decrease in headcount, TCS reported a 9% increase in net profit at Rs 12,434 crore for the January-March quarter of FY24, compared to Rs 11,392 crore in the same period of the previous year. Milind Lakkad, TCS’s chief HR officer, attributed the reduced attrition rate, campus hiring success, increased customer interactions, and employees returning to the office as factors contributing to the company’s improved morale and delivery center vibrancy.

The company also noted a 3.5% revenue increase to Rs 61,237 crore during the quarter. TCS’s performance in FY24 reflects a strategic shift in its workforce dynamics and operational focus amidst changing market conditions and evolving business landscapes.

IANS

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