As Infosys released its Q4 figures, it revealed that its employee count had decreased by 3,611 compared to the previous quarter in the 2023 fiscal year. Although the company added 29,219 employees throughout the year, this marks a 46 per cent decrease from last year's net increase of 54,396 employees.
As of March 31, 2023, Infosys' current headcount is 343,234, which is the first time the company has ended a quarter with fewer employees than the preceding quarter since the pandemic-affected quarter of FY21. In contrast, during the same quarter the previous year, Infosys had added 21,948 employees, revealed Moneycontrol in its latest report.
Throughout the fiscal year, Infosys has consistently decreased its net addition each quarter, indicating the mounting pressure on the IT sector. In Q1, the company added 21,171 employees on a net basis, followed by 10,032 in Q2, and 1,627 in Q3. However, in Q4, the company experienced a net reduction in employees.
Infosys reported its Q4FY23 results, revealing that its constant currency revenue growth for the year was 15.4 per cent, which fell below the company's projected growth rate of 16-16.5 per cent.
Infosys' attrition rate for the quarter declined to 20.9 per cent, extending the trend from the previous quarter's trailing twelve-month rate of 24.3 per cent. As the talent market stabilises, the attrition rates have been progressively normalising.
The attrition rate peaked at 28.4 per cent in Q1FY23, decreased to 27.1 per cent in Q2FY23 and further to 24.3 per cent in Q3. The company's leadership had previously anticipated a downward trend in quarterly annualised attrition, which has been observed in the near term.
In FY23, Infosys recruited around 51,000 freshers, surpassing its target of 50,000 freshers for the year. However, the company declined to disclose its hiring figures or plans for FY24. This has occurred concurrently with a decrease in the company's utilisation.
"Utilisation declined to 80 per cent on the back of softness of demand. We expect the utilisation to improve gradually in the coming quarters. As freshers start getting deployed, we will calibrate the hiring for FY24 based on the available pool of employees, growth expectations and attrition trends," Chief Financial Officer Nilanjan Roy told analysts.