Infosys Q4 Headcount Drops by 8,440 as Attrition Edges Up to 12.6%

Infosys reported a notable decline in its workforce during the fourth quarter of FY26, even as the company posted strong financial results. The IT services major saw its headcount reduce by 8,440 employees sequentially, bringing the total workforce to 3,28,594 as of March 31, 2026, compared to 3,37,034 in the previous quarter. This decline highlights the cautious approach being adopted by IT firms amid evolving demand conditions and global uncertainties.

Despite the quarterly drop, the company still recorded a net addition of 5,016 employees on a year-on-year basis, indicating that hiring has not completely stalled but is being managed more conservatively. The workforce stood at 3,23,578 in the corresponding quarter of the previous financial year, showing that overall growth in employee numbers remains positive, albeit at a slower pace.

According to the company’s leadership, workforce size is closely linked to business demand, utilisation levels, and project pipelines. The management pointed out that quarterly fluctuations in headcount are not unusual and often reflect seasonal variations as well as adjustments based on client requirements. The balance between supply and demand continues to play a critical role in workforce planning, particularly in a period marked by cautious client spending and delayed project ramp-ups.

In terms of hiring strategy, Infosys maintained its commitment to onboarding fresh talent. The company successfully hired around 20,000 freshers during FY26, in line with its earlier plans, and has indicated that it intends to maintain a similar hiring target for FY27. This suggests a long-term focus on building a strong talent pipeline, even as short-term hiring remains measured.

At the same time, employee attrition has shown a slight increase. The voluntary attrition rate over the last twelve months rose to 12.6% in Q4 FY26, up from 12.3% in the previous quarter. However, it remains lower than the 14.1% reported a year ago, indicating some stabilization in employee turnover compared to earlier periods of high attrition in the IT industry. The marginal rise in attrition could be attributed to selective hiring by competitors and changing employee expectations in a dynamic job market.

The broader IT sector is also witnessing similar trends. Wipro reported only a marginal increase in its workforce during the quarter, adding just over a hundred employees sequentially. Meanwhile, Tech Mahindra saw its headcount decline by nearly 2,000 employees, reflecting ongoing restructuring and efficiency measures. In contrast, TCS continued to expand its workforce, adding over 2,300 employees and taking its total headcount to more than 5.8 lakh, indicating relatively stronger demand visibility.

Infosys’ workforce changes come alongside a strong financial performance in the March quarter. The company reported a 20.8% year-on-year increase in net profit, reaching Rs 8,051 crore, with sequential growth of 27.7%. Revenue also grew by 13.4% compared to the previous year, touching Rs 46,402 crore, and showed a modest 2% increase on a sequential basis. These numbers indicate that while revenue growth remains steady, companies are focusing on improving productivity and margins rather than aggressive hiring.

The current trend suggests a shift in how IT companies are managing their talent strategies. Instead of large-scale hiring seen in previous years, firms are now prioritizing operational efficiency, better utilisation of existing employees, and selective recruitment aligned with demand. This approach is also influenced by macroeconomic factors, including global uncertainties and cautious spending by clients, particularly in key markets.

Another important factor shaping hiring trends is the growing role of automation and artificial intelligence. As companies adopt advanced technologies to improve efficiency, the need for large workforce expansions is gradually reducing. This shift is prompting IT firms to focus more on upskilling employees and optimizing workforce structures.