DBT Bureau
Pune, 17 Oct 2026
India’s major IT services companies are changing their workforce strategies as artificial intelligence (AI), cautious client spending and pressure to improve productivity reshape the technology services industry. While some companies continue to hire, others have reported employee reductions, raising concerns about job security and the pace of recruitment across the sector.
The latest employee data from Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech and Accenture shows that workforce trends differ across companies, with employee cuts and slower hiring emerging as key concerns.
Wipro cuts more than 6,700 employees in September quarter
Wipro reported a decline of 6,716 employees in the September 2026 quarter, taking its workforce to 236,328 from 243,044 in the June quarter. The reduction was approximately 2.8% sequentially, according to its quarterly workforce data. However, its employee count remained higher than the 235,492 reported a year earlier.
The company also faced pressure on new business bookings. Its total contract value (TCV) bookings fell to $2.6 billion in the September quarter from $4.7 billion a year earlier, marking a decline of approximately 44.7%. Net profit declined 1.5% year-on-year to ₹3,201 crore, despite revenue growth.
Wipro’s voluntary attrition rate in IT Services eased to 13.8% from 13.9% in the previous quarter. The workforce reduction and decline in deal bookings highlight the challenges facing the company as it attempts to strengthen growth and improve productivity.
TCS workforce remains below 600,000
TCS reported a global workforce of 598,056 employees at the end of September 2026. The company added employees during the quarter, but its workforce remains below the 600,000 mark following earlier restructuring and job cuts.
In July 2025, TCS announced plans to reduce approximately 12,000 positions, primarily affecting middle- and senior-level employees. In the September 2025 quarter, its headcount fell by nearly 19,755 sequentially to 593,314.
TCS’s latest quarterly revenue grew only 0.5% sequentially in constant currency, its weakest September-quarter growth in three years. Meanwhile, annualised AI revenue increased to $3.1 billion, reflecting the growing importance of AI-led services in its business model.
The combination of modest sequential growth in traditional IT services and rising AI adoption highlights the changing demand for technology workers. However, TCS’s latest workforce figures show that the company added employees during the September quarter rather than reporting another sequential decline.
Infosys reports a marginal workforce decline
Infosys had 328,062 employees at the end of June 2026, down by 532 from 328,594 at the end of March 2026. Its voluntary attrition rate increased to 13% from 12.6% in the preceding quarter.
The company said it planned to recruit 20,000 college graduates during FY27 and had hired more than 4,000 graduates in the June quarter. Its workforce data therefore points to a mixed picture, with a small sequential reduction in employee numbers alongside continued graduate recruitment.
The figures available for the June quarter do not establish a company-wide layoff programme. Nevertheless, the contrast between a marginal headcount decline and planned graduate hiring reflects the industry’s shift towards selective recruitment and changing skill requirements.
HCLTech increases hiring, but AI poses a challenge
HCLTech added 6,450 employees in the September 2026 quarter, marking its largest quarterly workforce increase in 16 quarters, according to recent reporting. Revenue increased 2% sequentially to $3.724 billion, while total contract value bookings reached $3.258 billion.
Despite the workforce expansion, concerns remain over the potential deflationary impact of AI on technology services. As companies automate tasks and deliver projects more efficiently, traditional service providers may face pressure on pricing and the number of employees required for certain projects.
HCLTech’s latest figures show workforce growth, meaning it would be inaccurate to characterise its September-quarter performance as a workforce cut.
Accenture shifts workforce towards AI-related skills
Accenture employed approximately 814,000 people as of August 31, 2026, compared with approximately 779,000 a year earlier. Its workforce increased by around 35,000 over the period, while voluntary attrition declined to 13% from 14% in fiscal 2025.
However, the company is adjusting the composition of its workforce to reflect changing client demand and AI adoption. Recent analysis has highlighted questions about whether AI-driven productivity could reduce demand for some traditional consulting and technology services roles, even as Accenture expands AI-related services and recruits people with relevant skills.
The latest workforce figures do not indicate an overall headcount decline at Accenture. The concern is whether employees in roles affected by automation can adapt to changing requirements as the company restructures its talent strategy.
AI and cautious spending reshape IT employment
The workforce figures underline a broader shift in the IT services industry. Companies are balancing recruitment for AI, cloud, cybersecurity and digital transformation projects against pressure to control costs and improve utilisation.
For employees, the changes could mean greater competition for traditional software services roles, more selective campus recruitment and an increased need to develop skills in emerging technologies. However, workforce reductions do not automatically mean that AI alone caused job losses; restructuring, client demand, project requirements and business performance also influence hiring decisions.
For now, the latest disclosures show a mixed employment picture rather than a uniform downturn: Wipro reported a substantial quarterly reduction, TCS and HCLTech expanded their workforces, Infosys reported a small sequential decline in June, and Accenture recorded annual workforce growth.
US immigration restrictions add uncertainty for Indian IT employees
Adding to workforce concerns, the US government has suspended access to the Permanent Labor Certification (PERM) programme for several technology companies, including TCS, Infosys, Wipro and HCLTech, affecting an important route through which eligible foreign employees can pursue employment-based green cards. The move could increase uncertainty for Indian professionals seeking permanent residency in the US, particularly those with pending applications. However, the suspension does not automatically cancel existing H-1B work visas. The developments add another challenge for IT companies managing overseas staffing, immigration compliance and employee retention.
The key question for the coming quarters is whether demand for AI-related work will create enough new positions to offset any reduction in traditional IT services roles.
Note: Employee headcount, hiring, attrition and financial figures have been collected from the companies’ official quarterly financial results, exchange filings and published disclosures. The information has been cross-checked against available company-reported data and relevant sources. Workforce changes have not been attributed solely to AI unless explicitly confirmed by the company.
