TCS Hiring! Tata's 56-Yr-Old Firm's Headcount Up For First Time In 4 Quarters, 5,452 Employees Added In Q1FY25

Tata Consultancy Services (TCS), the 56-year-old company of Tata Group, has witnessed a rise in its headcount for the first time in four quarters. In Q1FY25, TCS added 5,452 employees to its workforce. This comes after TCS let go of 13,249 employees in FY24 due to uncertainties in macro conditions. With the latest TCS hiring, it looks like, tech players are finally recording recovery in growth levers after a sluggish FY24, owing to weaker discretionary spending. TCS Q1FY25 earnings are also upbeat.

By the end of the June 2024 quarter, TCS workforce stood at 606,998, which is a net addition of 5,452 employees compared to a total headcount of 601,546 employees as of March 31, 2024.

The current employee base is very diverse with 35.5% women and 151 nationalities. To train these employees, TCSers have clocked 11 million learning hours and acquired 1.2 million competencies.

That being said, TCS has recorded an IT services attrition rate of 12.1% for the last twelve months.

Milind Lakkad, Chief HR Officer, said: "I am delighted to announce the successful completion of our annual increment process. Our continued focus on employee engagement and development led to industry-leading retention and strong business performance, with the net headcount addition being a matter of immense satisfaction."

In Q1FY25, TCS' employee costs stood at Rs 35,148 crore, compared to a cost of Rs 36,416 crore in the same quarter a year ago. On the other hand, TCS employee's benefits jumped to Rs 26,657 crore in Q1FY25, compared to Rs 25,979 crore in the June 2023 quarter and Rs 25,631 crore in the March 2024 quarter.

TCS has been trimming its workforce for three consecutive quarters until Q1FY25. In the March 2024 quarter, TCS let go of 1,759 employees, while 5,680 people left the company in the December 2023 quarter. Meanwhile, a massive 6,333 employees left TCS in the September 2023 quarter. However, notably, TCS hired a meagre 523 people in the June 2023 quarter.

On year-on-year, TCS headcount is still down by 8,320 employees in Q1FY25. The headcount was at 6,15,318 employees as of the June 2023 quarter.

Overall, in FY24, TCS let go of 13,249 employees, taking its headcount to 601,546 people, compared to the headcount of 614,795 employees as of March 31, 2023.

In Q1FY25, TCS earned a consolidated net profit of Rs 12,105 crore, registering a growth of 8.86% from a net profit of Rs 11,120 crore in the same quarter a year ago. However, sequentially, TCS' consolidated net profit dipped by 3.2% in Q1FY25 compared to PAT of Rs 12,502 crore in Q4FY24.

Meanwhile, consolidated revenue from operations stood at Rs 62,613 crore, recording a growth of 5.44% from revenue of Rs 59,381 crore in Q1FY24, and was also up by 2.5% from revenue of Rs 61,237 crore in Q4FY24. In constant currency, the company's revenue growth is at 4.4% YoY in the quarter under review.

Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world's largest businesses in their transformation journeys for over 56 years.