TCS employee strength shrinks by 5,370 in Q3 after 2 quarters of growth

TCS has already begun its process for campus hiring in the next financial year, stating that it will continue to grow its quality talent

IT major Tata Consultancy Services (TCS) on Thursday reported a net decline of 5,370 employees in the third quarter (Q3) of financial year 2024-25 (FY25). This marks a significant shift for India’s largest IT services company after two consecutive quarters of headcount growth.

 

This reduction also brings TCS’s total workforce to 607,354 employees, as stated by the company in an exchange filing following the release of its quarterly financial performance.

 

In Q2, TCS added 5,726 employees, showing sequential growth. However, the latest decline reflects a challenging period for the IT giant. The company’s headcount had recently recovered after the first decline in 19 years during FY24. TCS had added 22,600 employees in FY23 and a net 103,000 employees in FY22, highlighting the stark contrast in its hiring trend.  ALSO READ: TCS Q3 results: Net profit rises 12% to Rs 12,380 cr, revenue up 5.6%

 

Despite the reduction, TCS said that it would continue to focus on employee growth and development.

 

Employee growth and campus hiring

TCS Chief Human Resources Officer Milind Lakkad, in a release, said, “We promoted over 25,000 associates this quarter which brought the total promotions this financial year to more than 110,000. We continue to invest in employee upskilling and overall well-being.”

 

In October the IT firm had announced the beginning of its campus hiring process for FY26. In its latest release, TCS reiterated its commitment to campus hiring, with plans to onboard a higher number of graduates next year.

 

The company had added 11,000 employees in the first half of FY25, bringing its headcount to 612,724. “We continue our focus on acquiring quality talent. This year, we have more than doubled our hiring of higher cadre trainees,” Lakkad had said in October, as earlier reported by Business Standard.

 

Marginal rise in attrition

Meanwhile, attrition for the quarter that ended on December 31, 2024, rose slightly to 13 per cent, up from 12.3 per cent in the previous quarter, indicating increased employee turnover.

 

For Q3 FY25, TCS reported a consolidated net profit of Rs 12,380 crore, a 12 per cent increase from Rs 11,058 crore in the same period last year. The company’s revenue rose by 6 per cent to Rs 63,973 crore.

 

Ahead of the results, TCS shares on the BSE fell nearly 1.5 per cent, closing at Rs 4,046 per share.