Wipro Ltd added 614 employees in the fourth quarter of the previous financial year, reversing its recent trend of workforce reduction and signalling a renewed focus on operational efficiency and talent utilisation. The move comes as the Bengaluru-based IT services company seeks to rebalance its hiring strategy and improve margins amid a challenging global tech landscape.

The company’s total headcount rose to 233,346 by the end of FY25, a net increase of 732 employees from 232,614 in the previous year. This marginal growth in workforce is significant, given Wipro had seen declines in employee numbers for the past two consecutive financial years. The uptick reflects a strategic recalibration of hiring and workforce management practices.

According to Wipro, the company is continuing to reassess its lateral and campus hiring models with a sharper focus on improving employee utilisation rates. This approach is expected to contribute to margin improvement, a key performance metric closely watched by investors and analysts alike.

Attrition stabilises as IT hiring cools

Another positive development for Wipro has been the sequential drop in attrition, which stood at 15% on a last-twelve-month (LTM) basis in Q4 FY25, down from 15.3% in the previous quarter. This stabilisation in employee turnover aligns with a broader trend across India’s IT sector, where companies are witnessing a cooling of the high attrition levels seen during the post-pandemic tech boom.

The fall in attrition suggests that talent churn may be returning to pre-pandemic norms, as the hiring frenzy of the past two years subsides and both employees and employers recalibrate expectations. It also points to improved employee engagement and internal measures taken by firms like Wipro to retain critical talent.

In comparison, India’s largest IT services firm, Tata Consultancy Services (TCS), also reported a modest net headcount addition of 625 employees in the fourth quarter, underlining a cautious but stabilising hiring trend among top-tier IT players.

Financial performance shows steady growth

Wipro’s fourth quarter earnings, announced on 16 April, showed a steady performance, with net profit rising 6.4% sequentially to ₹3,569.6 crore. The company’s gross revenue grew marginally to ₹22,504.2 crore. Meanwhile, its operating margin improved to 17.5%, a year-on-year expansion of 1.1 percentage points.

This improvement in margins could be partly attributed to the company’s efforts to increase the productivity of its workforce by streamlining hiring and improving employee deployment across projects.

“While demand remains uneven across sectors, we are seeing early signs of a rebound in client spends in some of our key markets. Our focus remains on driving profitable growth by optimising our delivery structure and improving employee utilisation,” a Wipro executive stated during the earnings call.

Rebalancing for long-term growth

Wipro’s modest headcount addition, coupled with improved attrition figures, signals a broader strategic shift in the company’s talent management approach. Instead of aggressive hiring, the company appears to be prioritising the deployment and upskilling of existing employees. This is a significant change from the peak pandemic years, where companies ramped up hiring to meet digital transformation demand.

Experts believe this trend is likely to continue in FY25, as IT firms focus on sustaining margins, improving operational efficiency, and adapting to the evolving demands of clients across industries.

With global economic uncertainty and caution around tech spending still looming, most IT majors are expected to take a conservative approach to hiring, choosing instead to optimise internal resources and make targeted hires where needed.

Outlook for FY25

As the new financial year unfolds, analysts will be closely watching how Wipro and its peers balance growth with profitability. The slight uptick in headcount and stabilising attrition are encouraging signs for the company, particularly as it navigates ongoing shifts in client demand and broader macroeconomic headwinds.

Wipro’s focus on recalibrating its hiring models, coupled with improved employee retention, could help the firm maintain healthy margins while staying agile in an increasingly competitive market. The coming quarters will reveal whether this strategy pays off — but for now, the numbers paint a cautiously optimistic picture.