Bengaluru-based IT services major Infosys reported a significant reduction in its workforce during the March quarter of fiscal year 2026 (Q4 FY26). The company's headcount fell by over 8,400 employees, bringing its total workforce to 328,594 by the end of March 2026, down from 337,034 in the preceding December quarter. This decrease comes as Infosys, like many in the Indian IT sector, adjusts its hiring strategies in response to a softer global demand environment and an intensified focus on operational productivity.
Despite the overall headcount reduction, Infosys maintained elevated utilization levels, with utilization (excluding trainees) reaching 83% in the March quarter. This indicates improved deployment of existing staff and a reduced bench strength. Voluntary attrition for IT Services (last twelve months) saw a slight sequential increase to 12.6% from 12.3% in the previous quarter, though it remained notably lower than the 14.1% recorded in the same quarter last year.
The trend at Infosys mirrors a broader shift within India's IT services industry. Companies are moving away from the aggressive hiring seen in the post-pandemic period, opting instead for tighter workforce management, increased automation, and leveraging AI-led efficiencies to optimize operations.
Competitors exhibited varied workforce trends during the same period. Tata Consultancy Services (TCS), India's largest IT services firm, reported a net addition of 2,356 employees in Q4 FY26, bringing its total employee base to 584,519. Wipro, the fourth-largest, added a cautious 135 people, ending the quarter with 242,156 employees. Meanwhile, Tech Mahindra experienced a headcount decrease of nearly 2,000 in the January-March quarter, with its total workforce standing at 147,623.
Financially, Infosys delivered a strong performance in Q4 FY26. The company's consolidated net profit rose by 20.87% year-on-year to Rs 8,501 crore, up from Rs 7,033 crore in the corresponding period last year. Revenue from operations also saw a healthy increase of 13.38% year-on-year, reaching Rs 46,402 crore, compared to Rs 40,925 crore a year prior, reflecting steady business momentum.