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In a significant turn of events, Infosys, one of India's leading IT services companies, has reported a notable decline in its employee count for the fiscal year 2023–2024. This marks the steepest drop in full-year headcount for the company in nearly 23 years.
According to official records, a total of 26,000 employees have bid farewell to Infosys over the past 12 months, reflecting a departure from the company's previous trends.
Throughout the fiscal year, Infosys maintained an employee count of 317,240, marking a decline of 7.5% compared to the previous fiscal year. This shift in headcount dynamics has garnered attention within the industry and among stakeholders.
Jayesh Sanghrajka, the Chief Financial Officer of Infosys, underscored the company's improved utilization rate, which rose from 77% to 82% during the period under review. Sanghrajka attributed the decline in headcount to various factors, including modifications in the growth environment and a reduction in attrition rates.
Speaking about the changes, Sanghrajka stated, "Our utilization rate has improved from 77 percent utilization including trainees in the beginning of the year. The growth environment was also very different at that point so we had guided differently." He further elaborated, "We had to realign some of those factors as the growth environment changed. Our utilization has changed to 82 per cent now. Our attrition has also come down significantly. That’s the reason you see a net headcount reduction."
Notably, Infosys also implemented changes in its hiring strategy, with a significant shift away from recruiting fresh graduates on campus. The company now hires more than half of its freshers off-campus, representing a substantial departure from its previous practices. This shift in hiring strategies has led to a reduction in the number of new hires by 5,423 during the quarter.
Despite the decline in headcount, Infosys has reported positive financial performance, with a 30% increase in net profit for the January–March quarter, amounting to Rs 7,969 crore. This substantial increase in net profit, compared to the previous year, underscores the company's operational efficiency and effective management practices.
The strategic modifications implemented by Infosys in response to evolving market dynamics highlight the company's agility and proactive approach to addressing challenges. By adapting its workforce strategies and optimizing operational efficiencies, Infosys continues to demonstrate resilience and competitiveness in the dynamic IT services landscape.
The decline in employee count at Infosys, coupled with its strong financial performance, reflects the company's strategic resilience and adaptability in navigating changing market conditions.
