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HCL Technologies (HCLTech), India's third largest IT services company, experienced a decline in its headcount during the second quarter of fiscal year 2025 (Q2FY25), ending September 30, 2024. The company reported a reduction of 780 employees, a surprising trend considering its rivals, such as Tata Consultancy Services (TCS), have resumed hiring. Despite this headcount decrease, HCLTech's overall employee count stood at 218,621 in Q2.
HCLTech's headcount reduction contrasts with its performance in the previous quarter (Q4FY24), where it reported net headcount additions on both a year-over-year and sequential basis. This was during a time when industry giants like TCS, Infosys, and Wipro experienced negative headcount additions. While the company has reduced its workforce in Q2FY25, HCLTech remains committed to fresh talent acquisition, adding around 2,932 new graduates during the quarter. Their plans include onboarding a total of 10,000 freshers throughout fiscal year 2025, indicating a focus on future growth and skill development within the organization.
Despite the headcount adjustments, HCLTech delivered strong financial performance in Q2FY25. The company reported a 11% year-on-year increase in net profit, reaching Rs 4,235 crore, exceeding market expectations. HCLTech's revenue from operations also saw a positive rise, reaching Rs 28,862 crore, representing an 8.2% year-on-year growth. On a sequential basis, the company experienced a slight decline in net profit by 0.5%, while revenue increased by approximately 3%. The company's EBIT margin demonstrated positive growth, reaching 18.6% and showing a sequential increase of 149 basis points.
HCLTech's decision to reduce its headcount while simultaneously focusing on hiring fresh graduates might indicate a strategic shift in their workforce strategy. They are likely prioritizing experienced professionals while investing in future talent. The company's strong financial performance demonstrates its resilience and ability to adapt to changing industry dynamics. Moving forward, it will be interesting to observe how HCLTech balances its workforce needs with its commitment to fresh talent acquisition and its overall growth strategy.