Top 5 Indian IT Companies Report 79% Drop in H1 Hiring as TCS Loses 19,700 Employees

India’s leading IT services firms, including TCS, Infosys, HCLTech, Wipro, and Tech Mahindra, reported a sharp decline in net hiring during H1FY26. This drop, the steepest in years, is primarily driven by TCS’s headcount reduction, even as others showed moderate gains tied to steady demand for digital transformation services and AI integration.

Massive Workforce Drop at TCS Weighs on Sector Hiring

The top 5 Indian IT companies added a meagre net 2,686 employees in H1FY26, a steep 79.25% decline from the same period last year. TCS alone lost 19,755 employees in Q2FY26, marking its largest-ever quarterly drop. Although it also onboarded 18,500 new employees during this period, the restructuring efforts led to significant net downsizing.

Hiring Trends Across Other Major IT Firms

In contrast to TCS, Infosys registered a net addition of 8,203 employees in Q2. HCLTech onboarded 3,489 employees, Wipro added 2,260, and Tech Mahindra saw a net gain of 4,197. These additions reflect steady deal flows and strategic workforce building aligned with advanced technology services and digital platform delivery.

Freshers’ Addition Gains Momentum

Fresher hiring showed resilience across firms. TCS aims to recruit over 42,000 freshers in FY26. Infosys has already hired 12,000 freshers, nearing its full-year goal of 20,000. HCLTech onboarded 7,180 freshers, almost matching last fiscal's count of 7,829. Wipro added 5,900 freshers in H1 and plans to hire 10,000 to 12,000 this financial year.

Read More: Infosys Hires 12,000 Freshers in First Half: Eyes 20,000 for FY26!

Outlook and Strategy Going Forward

While TCS has not provided a hiring target for FY26, it confirmed honouring existing offers and maintaining demand-based recruitment. Tech Mahindra remains cautious with hiring, citing uncertain visibility, but expects clarity as strategies unfold. Firms continue to shift towards a “train-and-hire” approach to optimise project readiness among joiners.

Conclusion

The dramatic 79% fall in hiring across India’s top IT firms in H1FY26 indicates a phase of cautious restructuring driven by automation, cost efficiency, and digital transformation goals, especially shadowed by TCS’s unprecedented headcount decline.

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