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The cumulative hiring by IT majors Cognizant and Capgemini globally saw a significant decline of 151,607 employees in 2023 compared to 2022, according to a report by the Economic Times (ET) based on the companies' regulatory filings.
Both companies collectively employ approximately 400,000 people in India.
In 2022, Cognizant hired 132,000 employees, while Capgemini recruited 140,789 employees, excluding those hired through acquisitions. However, in 2023, Cognizant's hiring decreased to just over 60,000, and Capgemini hired about 61,182. This represents a drop of 72,000 for Cognizant and 79,607 for Capgemini from the previous year.
Similarly, top Indian IT service providers such as Tata Consultancy Services, Infosys, and Wipro also witnessed a decline in their headcount, which collectively dropped by around 70,000 in the financial year that ended on March 31.
Companies may also be hesitant to hire due to macro uncertainty and the belief that advancements in technologies like generative artificial intelligence (Gen AI) will reduce the need for hiring entry-level employees or freshers.
The decline in hiring may also be due to the over-hiring in the tech industry during the Covid-19 pandemic.
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Cognizant initiated a programme in the second quarter of 2023 aimed at simplifying its operating model and optimising corporate functions. This led to employee separation costs of $115 million and facility exit and other costs of $114 million in 2023, ET reported.
In the March quarter of FY24, Cognizant's employee count decreased by 7,100 to 344,400 from a year earlier, with approximately 250,000 employees based in India. Similarly, the total headcount at Capgemini Group dropped to 337,200 as of March 31, down six per cent from the previous year.
Despite these figures, Naukri's Hiring Outlook Survey indicates that the Indian white-collar job market is expected to witness optimistic hiring sentiments in the first half of 2024, with 92 per cent of recruiters anticipating new or replacement hiring.
Despite challenges in the IT sector, recruiters anticipate that IT roles will continue to dominate hiring activities, with significant recruitment also expected in non-IT sectors. However, recruiters anticipate attrition rates to remain below 15 per cent from January to June 2024, marking a slight improvement from previous quarters.
