Infosys Reports Decline in Headcount for First Time in Nearly 23 Years

IT giant Infosys has reported a decline in the number of employees in fiscal 2024 — for the first time in almost 23 years.
Infosys employeesThe India-based IT services company has witnessed a reduction of 25,994 employees during the financial year 2023-24, marking a 7.5 percent decrease from the previous fiscal year, bringing the total headcount to 317,240.

Infosys has revealed that the number of software employees has decreased to 299,814 on March 31, 2024 as compared with 304,590 on December 31, 2023 and 324,816 on March 31, 2023.

Voluntary attrition at Infosys was 12.6 percent on March 31, 2024 as compared with 12.9 percent on December 31, 2023 and 20.9 percent on March 31, 2023.

The number of total employees at Infosys has dropped to 317,240 on March 31, 2024 as compared with 322,663 on December 31, 2023 and 343,234 on March 31, 2023.

Infosys rival TCS has earlier reported a drop of 13,249 employees during the financial year 2023-24, making the first decrease in the number of employees in 19 years.

Infosys CFO Jayesh Sanghrajka said: “Our utilisation rate has improved from 77 percent including trainees at the beginning of the year. The growth environment was also very different at that point so we had guided differently.”

“We had to realign some of those factors as the growth environment changed. Our utilisation has changed to 82 percent. Our attrition has also come down significantly. That’s the reason you see a net headcount reduction,” Jayesh Sanghrajka said.

Quarterly data revealed that Infosys added 5,423 fewer employees. Jayesh Sanghrajka highlighted a shift in its hiring model. “We have changed our hiring model significantly. We no longer hire all the freshers from campus. We hire less than half of them from campus and more than half of them off campus,” Jayesh Sanghrajka said.

Financial Performance

In terms of financial performance, Infosys reported flat year-on-year revenues for the fourth quarter, amounting to $4,564 million, with a sequential decrease of 2.2 percent. The company secured a large deal Total Contract Value (TCV) of $4.5 billion for the quarter, with 44 percent being net new. Operating margin for the quarter stood at 20.1 percent, marking a sequential decrease of 40 basis points.

For the full financial year 2023-24, Infosys delivered revenues of $18.6 billion, reflecting a growth of 1.4 percent, with an operating margin of 20.7 percent. Notably, the company achieved its highest ever large deal TCV at $17.7 billion, with 52 percent being net new.

Salil Parekh, CEO and MD of Infosys, said: “We delivered the highest ever large deal value in fiscal year 2024. This reflects the strong trust clients have in us. Our capabilities in Generative AI continue to expand. We are working on client programs leveraging large language models with impact across software engineering, process optimization, and customer support.”

Gartner recently shared its forecast on IT spending for 2024 saying the size of the IT services market will be $1,519.928 billion, registering growth of 9.7 percent.

Baburajan Kizhakedath

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