Tech Giant Infosys Record Declined Headcount: Lowest Since 2001
By: Geetanjali
The Bangalore-based tech giant saw a substantial decrease in revenue, on Thursday, April 18, 2024, Infosys reported its revenue report for the 4th Qtr which recorded a decline of 1.4% in the revenue, lowest since its foundation in 1981.
Which is lesser than Infosys self forecasted its revenue to increase by 3% for the Financial year 2023-24.
This has also affected the company’s stake value as well, as Infosys share were down by 5% on NYSE on Thursday, after the revenue report was published.
Salil Parekh, CEO of Infosys said, “As we look at the start of FY25, we see the discretionary spending and digital transformation work at the same level, and we see the focus on cost efficiency and consolidation continuing. The guidance for FY25 as a band is higher than where we finished last year.
While the difference is small, it’s still a little higher from where we finished last year. There are some put and takes in terms of different industries and given the outlook on discretionary spend and digital work remaining the same and more focus on cost efficiency and consolidation, we have created that revenue growth guidance”,
Adding he said that, “As we go into the industries, we see, for instance, financial services are expected to see a better outlook this year compared to the past year. Manufacturing will have slower growth”.
Moreover, Infosys headcount has also significantly reduced in the last three decades. And has declined by 25,994 employees which is the lowest headcount since 2001. Infosys has hired less than 5,423 employees which is the least in the last five years on a quarterly basis, making the total headcount stand at 317,240 for FY24 which is 7.5% lower than that of 3,43,234 in FY23.
CFO Jayesh Sanghrajka at Infosys, said in the press conference, “When we started, we were at 77 percent utilisation including the trainees. The growth environment was different at that time. Our utilisation has gone up to 82 percent to 83 percent. Our attrition has also come down significantly. That is the reason for net headcount reduction,”
CFO explained that ,“We are now in a more agile model of campus hiring. We do campus hiring more than more than half the time from off campuses…fresher hiring off campuses…we will embark on that. At this point we are at 82% utilisation…so we still have headroom on that. Plus attrition is very low. So we have not decided on the campus hiring numbers at this point”.
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