HCLTech workforce dips in Q3FY26, adds nearly 2,900 freshers

HCL Technologies reported a marginal decline in its employee base in the December quarter of FY26, even as the IT services company continued to add fresh graduates amid steady demand conditions.

The Noida-headquartered firm said its headcount fell by a net 261 employees in Q3FY26, taking its total workforce to 226,379 at the end of the quarter, according to a company statement issued on January 12.

The sequential dip came despite 2,852 freshers being onboarded during the quarter, indicating that overall workforce movement was shaped by attrition and selective rationalisation rather than a broad-based hiring slowdown.

Mixed hiring trends across quarters

The Q3 movement followed a stronger hiring phase in the preceding quarter. In Q2FY26, HCLTech added 3,489 employees on a net basis, reversing a net decline of 269 employees in Q1FY26.

During the September quarter, the company had also hired 5,196 freshers, taking total graduate additions in the first half of FY26 to 7,180. The Q3 data suggests that while entry-level hiring has remained intact, overall headcount has been moderated through exits and targeted adjustments.

Attrition continues to ease

Employee retention showed signs of improvement. Voluntary attrition declined to 12.4% on a last-twelve-month basis, down from 13.2% a year earlier, pointing to lower churn even as net headcount remained marginally negative.

The easing attrition trend aligns with broader stabilisation across the Indian IT services sector, where elevated post-pandemic turnover has gradually normalised.

HCLTech’s relatively stable workforce contrasts with sharper reductions reported by some peers. Tata Consultancy Services disclosed a net decline of 19,755 employees in Q2FY26, after announcing plans to cut around 2% of its workforce, as part of an ongoing restructuring exercise.

Compared with these moves, HCLTech has maintained a steadier employee base while continuing to invest in skills aligned to growth areas such as artificial intelligence, digital services and engineering-led offerings.

Financial context

The headcount movement came in a quarter when HCLTech reported strong revenue growth and margin recovery, although restructuring costs and the one-time impact of new labour codes weighed on profitability.

For the December quarter, the company reported a year-on-year decline in net profit due to one-off items, even as revenue rose in double digits. The board also announced an interim dividend of Rs 12 per share.

With attrition easing and fresher hiring continuing, HCLTech’s workforce data points to a calibrated approach rather than aggressive expansion or contraction. As client demand remains steady but discretionary spending stays under watch, analysts expect IT services firms to remain selective on hiring while prioritising productivity and skill alignment in the coming quarters.