Infosys boosts headcount by 2,456 in Q2, reversing earlier staff cuts

Infosys CFO said that the company intended to hire 15,000 to 20,000 employees in FY25

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Homegrown IT major Infosys reported a net addition of 2,456 employees in the July-September 2024 quarter (Q2FY25). This marks a significant turnaround after six consecutive quarters of workforce reductions at the firm. It takes the company’s total headcount to 317,788, up from 315,332 in the previous quarter.

Last quarter, the company reported a net decrease of 1,908 employees in Q1FY25. These figures were shared by the company in an exchange filing on Thursday. During the same period last year, the company had 328,764 employees. Of its current employee base, around 39 per cent are women.

Infosys’ Chief Financial Officer Jayesh Sanghrajka had earlier said that the company intended to hire between 15,000 and 20,000 freshers during the current financial year, in a combination of on-campus and off-campus recruitment. However, it is unclear if the hiring over the current quarter was fresher recruitment.

Recently the company also asked its staff to work from the office at least 10 days a month as part of its hybrid working model. This shift comes amid ongoing discussions in the industry about the balance between remote work and in-office attendance with several IT firms encouraging staff to return to office. 

Meanwhile, the firm’s attrition rate, the rate at which employees leave the company, increased marginally in Q2. The rate rose to 12.9 per cent from 12.7 per cent in the previous quarter.

The IT industry in India has witnessed significant layoffs over the last two years. This trend may be turning around as more IT companies have announced hiring plans especially among freshers. Tata Consultancy Services has set a hiring target of 40,000 employees for FY25, with 11,000 freshers already onboarded in the first quarter. Meanwhile, Wipro has announced plans to recruit between 10,000 and 12,000 employees this financial year, having also experienced a headcount decline over six quarters.

Infosys on Thursday also raised its revenue growth guidance for FY25 to between 3.75 per cent and 4.5 per cent, up from the earlier forecast of 3 per cent to 4 per cent. This revision signals improving client spending and a more optimistic outlook for the rest of the financial year. The company has also reaffirmed its earnings before interest and taxes (Ebit) margin guidance for FY25, projecting margins between 20 per cent and 22 per cent. This is the second time in this financial year that Infosys has revised its revenue outlook upward.