Statsguru: Has TCS's job cut signal set the tone for the IT industry?

Tata Consultancy Services (TCS) has announced the sacking of around 12,000 employees, sending shockwaves in the information technology (IT) sector. Moreover, the industry witnessed even high voluntary attrition rate in the first quarter of FY26.

TCS employed the highest number of workers in FY25, at 636,833 employees. Infosys hired the distant second-highest number at 348,596 in FY25, followed by Wipro at 235,415. (Chart 1) 

Y-o-Y revenue per employee growth declined at four out of six companies between FY24 and FY25, with the exception of TCS and HCL.  

Broadly, one-third to half of the total revenues earned by IT companies was spent on employees during the past six years. However, the employee spend share was less than one-third in case of Tech Mahindra and HCL. While the FY25 attrition rates remained below pre-Covid levels, most companies experienced a 1–3 percentage point increase compared to FY24.  

Attrition rates in FY25 were slightly higher among male employees than female employees at most companies. LTIMindtree and TCS were the only IT firms that registered higher female attrition in FY25.  

Tech Mahindra paid the highest remuneration to its CEO & MD compared to its employees’ median pay in FY25, followed by Infosys and Wipro.