 "TCS headcount down by over 5K; attrition rose 13%, promoted 25K in Q3")
After two consecutive quarters of headcount growth, Tata Consultancy Services (TCS) on Thursday reported a fall of over 5,000 in total employees for the third quarter of the current financial year (Q3FY25). The company, however, said that FY26 hiring will be better than FY25’s.
TCS, India’s largest IT services firm, saw its headcount decline by 5,370 for Q3FY25. This has happened as the firm saw its attrition go up to 13 per cent from the preceding quarter’s 12.3 per cent.
Milind Lakkad, chief HR officer, did not comment directly on the decline in headcount. He said: “Across Q1 and Q2 (FY25) we have hired 11,000 people and we are on track to add 40,000 campus hires this year. The headcount fall is the impact of several things, such as productivity, utilisation, and cost efficiency.”
On attrition, he said that the 13 per cent is within the comfort zone of the company and it will also come down.
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“Our campus hiring for the year is going according to plan and preparations are afoot to on-board a higher number of campus hires next year,” said Lakkad. However, he did not confirm the total number of campus offers TCS would make for FY26.
Lakkad further added that during Q3FY25, TCS promoted over 25,000 associates, bringing the total promotions for the current financial year to more than 110,000.
Asked how the company would deal if the new government in the US made changes to H-1B visa regulations, Lakkad said TCS was not dependent on visas.
“Our dependence on visa is very low. We are not expecting any major disruption to our business,” said K Krithivasan, chief executive officer and managing director (CEO & MD), TCS.