Tata Consultancy Services (TCS) has disclosed a notable decline in its headcount, reporting a drop of 13,249 employees year-on-year during the financial year 2023-24 (FY24). This marks the first time in 19 years that the premier IT software giant has experienced such a reduction in its workforce, IANS reports.
According to TCS’s filing with the stock exchange, the Indian IT services company has concluded FY24 with 601,546 employees. The downward trend persisted into the fourth quarter (Q4) of FY24, with a decrease of 1,759 employees. This signifies the third consecutive quarter of declining headcount, following a reduction of 5,680 employees in the previous quarter and 6,333 employees in Q2.
Mumbai-based TCS managed to report a 9 percent increase in net profit, amounting to Rs 12,434 crore for the January-March quarter of FY24, compared to Rs 11,392 crore in the corresponding period of the previous year.
Milind Lakkad, the Chief HR Officer, attributed this positive performance to several factors including reduced attrition at 12.5 percent, a favorable response to campus hiring, increased customer engagements, and the return of employees to office premises, which has significantly enhanced the vibrancy of delivery centers and morale among associates.
The revenue for the quarter also saw a healthy rise, climbing by 3.5 percent to reach Rs 61,237 crore. TCS further announced an operating margin increase to 26 percent from the previous quarter’s 25 percent. For the entire FY24, the company posted a commendable 6.8 percent rise in revenue to Rs 240,893 crore, with a net profit of Rs 46,585 crore.
TCS has registered record-breaking numbers in new technology deals with enterprises, securing $13.2 billion in the fourth quarter alone, and a staggering $42.7 billion for the entire financial year.
