Infosys cut its headcount by 8,440 in Q4FY26, bringing total employees to 3,28,594 at the end of March 2026. The move comes even as the company reported higher quarterly profits. Year-on-year, headcount is still up by 5,016 employees, but attrition has risen to 12.6%, signaling deeper workforce churn.
Indian companies are planning to hire more mid-level professionals, with salary hikes expected to stay moderate between 5% and 10% for 2026–27. While budgets tighten, firms also face persistent attrition risks, especially among mid-senior employees. The move suggests employers want experienced growth without escalating pay and retention costs.
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India’s IT sector is seeing a rise in replacement hiring as Gen Z professionals switch jobs faster. The churn is reshaping how firms recruit, onboard, train, and retain talent. In response, companies are leaning more on contractual roles and speeding up onboarding while investing in continuous reskilling to keep up with rapid workforce turnover.
Indian salaries are projected to rise 9.1% in 2026, according to an Aon survey, outpacing many global economies. Real estate, NBFCs and manufacturing are expected to lead the increases as employee attrition continues to fall toward pre-pandemic levels. Companies are also revising pay structures to comply with new wage codes, often reshaping compensation.
Infosys plans to hire around 20,000 freshers in FY27, even as its total headcount dipped and attrition eased in the March quarter. The company says this reflects a calibrated workforce strategy—reducing employment, adjusting its talent pyramid, and building capabilities for AI-led services. Revenue grew in Q4FY26, but FY27 guidance remains cautious as client decisions slow.
India Inc expects average salaries to rise 9.1% in 2026, led by Global Capability Centres at 10.4%. Financial services and e-commerce are also projecting strong growth, while attrition is stabilizing. Companies are increasingly tying pay to skills, with emerging tech roles earning premiums and long-term incentives becoming more common, including for CEOs with performance-linked pay.
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