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Tata Consultancy Services (TCS), a prominent player in the information technology sector, recently announced a notable decrease in its headcount alongside a significant growth in net profit. According to reports, TCS witnessed a drop in its total employee base by over 13,000 during the previous fiscal year, marking the third consecutive quarter of decline, a trend unprecedented in the company’s history spanning 19 years. As of now, TCS’s employee count stands at 6,01,546.
The decline in headcount amounted to 13,249 for the financial year, with a sequential decrease of 1,759 employees. This contrasts with the previous fiscal year 2023-24, during which TCS had a headcount of 614,795 and added 22,600 employees throughout the year. The significant reduction in headcount has drawn attention to the company’s strategic adjustments and market dynamics.
Milind Lakkad, TCS’s Chief Human Resources Officer (CHRO), mentioned ongoing efforts to calibrate the hiring of freshers for the fiscal year 2024-25, aiming for a target of 40,000 new hires. Lakkad highlighted the upcoming TCS National Qualified Test as part of the recruitment process for direct hiring from students.
Despite the decline in headcount, TCS reported a notable growth in net profit, amounting to a nine per cent increase at ₹12,434 crore in the January-March quarter of FY24. This growth was primarily driven by robust domestic business performance, compensating for challenges faced in overseas markets. For the entire fiscal year, TCS’s net profit surged by 9 per cent to ₹45,908 crore, with revenues climbing to ₹2,40,893 crore from ₹2,25,458 crore in the previous year.
While North America, TCS’s largest market, experienced a 2.3 per cent dip in revenues, and continental Europe witnessed a 2 per cent decline during the latest quarter, the company’s domestic business saw substantial growth of nearly 38 per cent in revenues. This growth in domestic operations contributed to a 3.5 per cent overall increase in revenues to ₹61,237 crore during the quarter.
TCS’s Chief Executive, K Krithivasan, expressed cautious optimism about future growth prospects, stating, “It is difficult to say when growth will return… but FY25 will be better than FY24.” These statements reflect the company’s strategic outlook and ongoing efforts to navigate market challenges while leveraging domestic opportunities for sustained growth.
Sources By Agencies
