India’s top five IT firms—TCS, Infosys, HCLTech, Wipro, and Tech Mahindra—added a net total of just 2,686 employees during the July-September quarter (Q2 FY26), marking a dramatic 79% drop in hiring compared to the previous year. TCS alone shed nearly 20,000 jobs in the largest workforce reduction ever recorded by the company.

Q2 FY26 Employee Addition Breakdown

Company	Net Employee Addition (Q2 FY26)	Key Highlights
TCS	-19,755 (workforce cut)	Largest quarterly decline ever; 2% global workforce reduction
Wipro	+8,203	Hired 2,900 freshers in Q2; 5,900 in H1 FY26
Tech Mahindra	+4,197	Flexible hiring based on project demand
HCLTech	+3,489	Onboarded 5,196 freshers; attrition at 12.6%
Infosys	+8,203	12,000 freshers hired in H1; targeting 20,000 annually
Total	+2,686	79% drop vs previous year

TCS Drives Massive Workforce Reduction

TCS reduced its workforce by 19,755 employees in Q2 FY26, from 613,069 in June 2025 to 593,314 in September 2025. This represents approximately 66% higher than planned layoffs, reflecting operational realignment amid rapid technological disruption and automation.

The company’s strategy focuses on improving productivity and reducing excess capacity as AI and automation reshape service delivery models. Voluntary attrition in the IT services segment is estimated at around 12.8%.

Other IT Majors Show Recovery

While TCS downsized aggressively, competitors demonstrated modest growth. Infosys added 8,203 employees and has already hired 12,000 freshers in H1, close to its annual target of 20,000. HCLTech’s headcount increased by 3,489, with 7,180 freshers onboarded so far.

Wipro added 2,260 employees and hired 2,900 freshers in Q2, taking its H1 fresher intake to 5,900, with plans to hire 10,000–12,000 freshers in FY26. Tech Mahindra maintained flexible hiring aligned with project demand.

The Bigger Picture: Revenue Per Employee Rising

Despite workforce cuts, revenues remain stable or growing across major IT firms. This shift indicates a fundamental transformation—companies are leveraging automation, AI, and improved efficiency to deliver more with fewer people.

HCLTech’s Chief People Officer noted that the company’s headcount rise of 1.6% compared with 2.4% revenue growth indicates improved revenue per employee. The industry is moving from volume-based hiring to skill-based strategic recruitment.

What This Means for IT Professionals

The days of mass hiring are over. Companies now prioritize specialized skills in AI, cloud computing, cybersecurity, and data analytics. Freshers face longer onboarding delays, while experienced professionals must continuously reskill to remain relevant.

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