Mega IT companies like TCS, Infosys, HCL Technologies, Wipro and Tech Mahindra have reported a mixed performance for the June 2025 quarterly period. One of the noteworthy factors in these companies Q1FY26 results is the slowdown in hiring. 3 out of 5 of these top large-cap IT players have recorded a decline in total headcounts. These companies are also hinting towards dull to nil hiring in overall FY26.
Indian IT Companies Hiring Dire And Dull:
In Q1FY26, TCS and Infosys are the only two companies to increase their total headcount on a quarter-on-quarter and year-on-year basis. Meanwhile, Wipro, HCL Tech and Tech Mahindra reported a decline in total headcount. Among the top 5 IT players, TCS made the most hiring.
TCS’ total headcount stood at 613,069 employees in Q1FY26, a net addition of 5,090 employees QoQ and 5,715 employees YoY. Its rival Infosys added 210 employees QoQ and 8,456 employees YoY to a total headcount of 323,788 employees in the latest Q1.
However, Wipro’s headcount stood at 233,232 employees, HCL has 223,151 employees, and Tech Mahindra has 148,517 employees as of June 30, 2025. On a QoQ basis, Wipro’s headcount dipped by 114 employees, HCL’s declined by 269 employees, and Tech Mahindra’s dropped by 214 employees. On a year-on-year basis, the net addition was up.
These companies have signalled the uncertain macroeconomic environment due to the US tariffs as one of the reasons to their cautious approach in the coming quarters.
TCS, which is the largest hirer in the Indian IT sector, also stated that their hiring depends upon the conditions going forward. They have also not made any decision on wage hikes as of now.
That being said, the top 5 Indian IT companies hired only 4,703 employees in Q1FY26 compared to the previous quarter. On YoY, the hiring is up by 19,139 employees.
Why Are IT Companies Not Looking To Hire In FY26?
While talking with GoodReturns, Shruti Swaroop – Founder of Embrace Consulting & Co-Founder International inclusion Alliance said, “With the volatile macroeconomic conditions the Indian IT industry is experiencing, FY26 is being a risk-averse year for recruitment. Infused with global economic slowdown, automation, and changing client demands, IT behemoths are forced to rethink their talent strategy.”
Global Macroeconomic Headwinds:
The world economy is still grappling with inflationary pressures, geopolitical tensions, and monetary policy tightening. Consumers in major markets such as the US and Europe that contribute to around 60-70% of Indian IT revenues are slowing down IT spending and putting off discretionary technology purchases. This has a direct impact on the level of new deals and project ramp-ups and consequently muted recruitment needs.
Strong Bench Depth and Attraction
Over hiring during the post-pandemic tech boom (FY21-FY22) resulted in the IT companies having swollen bench strength. With attrition rates coming down as more Tier 1 IT companies are reporting sub-13% levels in FY25, companies are more keen on utilizing available strength rather than hiring fresh hands.
Delayed Onboarding and Offer Backlogs
Majority of the companies have yet to induct the candidates selected in previous years. Reports from the industry state that the pipeline of over 200,000 graduates who received employment offers in FY23 and FY24 is yet to get cleared. Till such time as the pipelines get cleared, the companies will not be interested in fresh hiring.
Paradigm Shift Towards Automation and AI
With the increasing adoption of GenAI, cloud automation, and low-code platforms, IT service delivery is becoming more technology-focused and less people-intensive. This shift is causing businesses to reskill instead of hiring additional staff.
Techies struggling to find an IT job in 2025 is not just an Indian problem but an impact seen on a global scale.