Layoff: Amid slow revenue growth in India’s IT services sector, major IT companies laid off about 70 thousand employees in the last financial year.
Layoff: Amid slow revenue growth in India’s IT services sector, major IT companies laid off about 70 thousand employees in the last financial year. Other companies including Infosys, Tata Consultancy Services (TCS), Wipro and Tech Mahindra laid off a large number of employees in the financial year 2023-24.
Infosys laid off 25,994 employees, while TCS laid off 13,249 employees. IT giant Wipro laid off 6,180 employees in the fourth quarter of the financial year 2023-24. The number of employees of the company declined by 24,516 in the entire year.
The total number of employees of Tech Mahindra at the end of the financial year 2023-24 was 1,45,455. There was a decrease of 795 in the fourth quarter and 6,945 in the entire year. According to the latest report of Crisil Ratings, there is a possibility of slow revenue growth in the IT services sector in the country for the second consecutive year, which will be five-seven percent in the financial year 2024-25.
As revenue growth slowed, IT services companies stopped hiring, leading to a four percent decline in headcount in December 2023 compared to a year earlier.
Aditya Jhaver, director, CRISIL Ratings, said the slowdown in technology spending will continue this financial year, which will impact the revenue growth of IT service providers. “Revenues from BFSI and retail sectors will continue to decline with a slow growth of four-five per cent, while manufacturing and healthcare will grow at a healthy 9-10 per cent,” he said.
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