TCS Q2 Results: Employee Headcount Drops by 6,333, Firm Focuses on Recalibrating Gross Additions
TCS Q2 Results: Employee Headcount Drops by 6,333, Firm Focuses on Recalibrating Gross Additions
In the second quarter, Tata Consultancy Services (TCS) reported a decrease in its employee headcount by 6,333. The IT behemoth, however, termed it as a strategic move of 'recalibrating gross additions'. The Chief Human Resources Officer, Milind Lakkad, commented that TCS's proactive approach in hiring talented freshers and equipping them with the necessary skills has started yielding positive results. He assured that the firm continues to nurture a robust talent pool, emphasizing on its commitment to growth and innovation.

India's leading IT services giant, Tata Consultancy Services (TCS) reported a drop in its employee headcount by 6,333 in the second quarter of the current fiscal year. The company, however, clarified that this reduction is part of a planned strategy of 'recalibrating gross additions' aimed at optimizing its workforce structure.

According to TCS's Q2 FY22 report, the net headcount stood at 5,09,058, a significant decrease from the 5,15,391 recorded in the previous quarter. This is the first time in the last six quarters that the company has experienced a drop in its employee numbers.

"We were expecting this. It's part of our strategy of proactively hiring bright freshers and investing in training them with the right skills," said Milind Lakkad, Chief Human Resources Officer, TCS.

Despite the drop in headcount, TCS has maintained a robust hiring trend. The company directly hired over 20,000 fresh graduates in India and onboarded more than 45,000 associates globally in the first half of FY22.

Commenting on the hiring trend, Lakkad stated, "Our strategy of hiring young talent and training them to meet the demands of the new age IT services is paying off. We have seen significant productivity gains from this approach."

According to industry analysts, TCS's employee recalibration strategy is in line with the evolving demands of the IT services industry. The shift towards digital transformation, automation, and cloud services necessitates a workforce that is well-versed with new age technologies.

"This shift in hiring strategy is not unique to TCS. Other IT giants are also focusing on hiring fresh talent equipped with skills in emerging technologies. This is the need of the hour in the fast-evolving IT services landscape," said Ravi Menon, IT Analyst at Elara Capital.

The company also stated that it will continue its aggressive hiring strategy in the coming quarters to meet the growing demand for its services globally.

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