Top IT firms add just 17 staff in nine months

India’s top five IT companies added just 17 net employees in the first nine months of the 2025-26 financial year, sharply slowing hiring as they turned cautious. This compares with 17,764 net additions in the same period last year. The shift reflects tighter demand, pressure on discretionary spending, and the growing use of AI-led delivery models that reduce the need for fresh hiring.The slowdown meant that headcount gains at several firms were supported mainly by acquisitions. Without these, net additions would have been flat or negative at some companies. Across the top five firms, additions were limited to just tens of employees, raising concerns for students and fresh graduates entering the job market.According to a report by TOI's Veena Mani & Shilpa Phadnis, TCS emerged as the biggest drag on overall numbers. It shed 25,816 employees in the first nine months of the current financial year after announcing a plan to cut 2% of its workforce, or over 12,000 roles, largely at mid-level and senior positions. During the same period, Infosys added 13,456 employees, Wipro added 9,740, HCLTech added 1,885, and Tech Mahindra added 752.In the December quarter alone, the combined headcount of the five firms fell by 2,174 employees. TCS saw a sharp reduction of 11,151 employees, while Infosys and Wipro added 5,043 and 6,529 employees, respectively.Phil Fersht, CEO of US-based IT advisory firm HfS Research, told TOI that the headline numbers pointed to a structural shift rather than a temporary slowdown. He said the industry is moving away from the traditional pyramid-led growth model, where expanding headcount drove growth, as multiple forces reshape IT services.Fersht said discretionary spending remains under pressure, with clients focusing on better use of existing assets and higher productivity. “Second, AI and automation are starting to show up in delivery metrics. While AI is not yet driving large-scale revenue acceleration, it is clearly reducing the need for incremental hiring, especially at junior and mid levels. This is where the decoupling between revenue and headcount is becoming visible,” he said.TCS also avoided stating its campus hiring numbers this year, unlike in the past, signalling caution on fresher recruitment. Companies are rebalancing their workforce, focusing on productivity, role consolidation, and utilisation instead of growth-led hiring.Organic growth across the sector remained weak, with uneven demand recovery, slower deal ramp-ups, and muted discretionary spending. Margins on large deals stayed under pressure due to competitive pricing and higher productivity commitments. Global capability centres continued to hire, but at a slower pace, with recruitment becoming more selective and skill-specific.Ray Wang, CEO of US-based Constellation Research, said AI-driven efficiency and changing client expectations are creating a low-hire, low-fire environment. “Single-digit growth is not only being cheered but is becoming the new reality. Services firms that have gained the most ground are AI-first, AI-exponential players that are able to exceed $100,000 in revenue per employee with around 25% digital labour. This mega trend has permanently reshaped the services industry landscape,” he said.The hiring numbers underline a clear shift in how India’s largest IT firms are growing. With demand uncertain and AI-led delivery models improving productivity, companies are no longer expanding headcount in line with revenue. The near-freeze in hiring signals a more cautious phase for the sector, where efficiency, skills, and utilisation are taking priority over scale, reshaping job prospects and career entry points in the industry.with TOI inputs