Tech Mahindra, the leading IT services company, saw a decrease of 4,354 employees compared to the previous quarter. The total number of employees in the third quarter was 146,250.
In the previous quarter, Tech Mahindra had added 2,307 employees, reported Moneycontrol. The attrition rate went down from 11 per cent in the second quarter to 10 per cent in the third quarter.
This follows the trend of decreasing attrition rates observed since the beginning of the fiscal year 2023. In the current quarter, three out of India's top five Tier-I IT companies experienced a significant reduction in their workforce.
Tata Consultancy Services (TCS) saw a decline of 5,680 employees, Infosys' headcount decreased by 6,101, Wipro was down by 4,473, and HCLTech reported an addition of 3,617 employees.
Additionally, Tech Mahindra has been concentrating on developing talent in generative AI.
As of the third quarter, Tech Mahindra had provided additional skills and training to around 60,000 associates. As of the second quarter, Tech Mahindra had provided additional skills and training to approximately 10,000 associates. This marks the initial quarter since the new CEO, Mohit Joshi, fully assumed control from the former CEO, CP Gurnani.
To bring about a positive change and enhance the current state of the business, Joshi implemented a restructuring of the organisation and the leadership team, effective from January 1.
The company is presently concentrating on expanding its presence into additional sectors, such as BFSI (Banking, Financial Services, and Insurance), healthcare, and life sciences.
In the announcement of its Q3 earnings on January 24, Tech Mahindra reported a significant decline in net profit, down by 60.6 per cent to Rs 510 crore year-on-year (YoY).