India’s leading IT companies experienced a decrease of over 7,000 employees in FY26, marking a significant shift in hiring patterns due to a focus on Artificial Intelligence (AI) and evolving industry demands. The combined headcount of major IT service providers like Tata Consultancy Services, Infosys, HCLTech, Wipro, and Tech Mahindra dropped by 7,389 employees in FY26, contrasting with a previous net addition of 12,718 in FY25 as per reports.
The decline was primarily driven by significant layoffs at TCS, which cut around 12,000 jobs during the year, one of the largest such actions by an Indian company recently. This overall reduction in hiring led to a negative trend, although three out of the five firms recorded slight net additions.
Management statements from these companies reflected a cautious approach towards hiring, refraining from giving clear guidance for FY27 amidst uncertain demand dynamics and the emergence of AI-driven business models.
Industry-wide hiring growth also exhibited signs of stabilizing. NASSCOM reported a mere 2,000 net job additions in the technology sector in FY26, totaling approximately 1.35 lakh compared to 1.33 lakh in FY25. The overall tech workforce in India increased to 59.5 lakh in FY26 from 58.2 lakh in the previous year, indicating a 2.3% rise.
Quarterly trends varied, with Infosys witnessing an 8,440-employee decline in Q4FY26, while TCS added 2,356 employees. HCLTech and Wipro saw modest increases of 802 and 135 employees, respectively, whereas Tech Mahindra’s headcount decreased by about 1,993.
Moreover, plans for hiring freshers also hinted at moderation. TCS announced intentions to recruit approximately 25,000 freshers in FY27, lower than the 40,000-42,000 range in previous years. Infosys is set to maintain a similar hiring level of around 20,000 freshers, while other firms indicated they would adjust based on demand conditions throughout the year.
