Tata Consultancy Services (TCS) reported a net decline of 5,370 employees in the October-December quarter, marking a reversal after two consecutive quarters of headcount growth. The company’s total workforce now stands at 607,354, reflecting ongoing adjustments in its operational dynamics.
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The decline comes amid a challenging quarter for TCS, with subdued performance in key markets, including North America. Despite the headcount reduction, TCS emphasised that workforce numbers are influenced by multiple factors, such as productivity, utilisation, and organisational structure, rather than being directly tied to business growth.
TCS also reported a marginal rise in attrition, with the rate increasing to 13% in Q3 from 12.3% in the previous quarter. This marks the second consecutive quarter of rising attrition after a consistent decline over seven quarters. TCS’ attrition had peaked at 21.5% in the second quarter of FY23.
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Chief human resources officer Milind Lakkad said, “Quarterly attrition may reduce going forward, but the LTM (last twelve months) attrition rate could vary depending on calculation dynamics”.
TCS remains on track with its plan to hire 40,000 freshers in FY25 and anticipates increasing campus hiring in the next fiscal year. The company is investing heavily in employee development, with its workforce clocking over 40 million learning hours and acquiring 3.8 million new competencies year-to-date.
Promotions have also been a key focus, with more than 25,000 associates promoted during Q3, bringing total promotions for FY25 to over 110,000 – nearly 20% of its workforce. “We continue to invest in employee upskilling and overall well-being,” said Lakkad.
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Looking ahead, TCS aims to leverage its investments in upskilling, artificial intelligence (AI), and generative AI (Gen AI) to capture emerging opportunities. CEO K Krithivasan highlighted the company’s focus on strengthening its capabilities in innovation and fostering partnerships to navigate a rapidly evolving business landscape.
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