HCLTech Workforce Declines in Q3FY26 Despite Hiring Nearly 2,900 Freshers

In the December quarter of FY26, HCL Technologies reported a slight decrease in its workforce, despite the IT services company continuing to hire recent graduates in the face of stable demand. The Noida-based company's headcount decreased by a net 261 people in Q3FY26. This decline has brought down its total workforce to 226,379 at the conclusion of the quarter. Even though 2,852 new hires were onboarded during the quarter, the sequential decline showed that attrition and selective rationalisation, rather than a general decrease in hiring, dictated total workforce mobility. Let us find out reasons behind this decline.

Why Workforce Declined Despite Strong Hiring at HCLTech?

A more robust recruiting phase in the previous quarter preceded the Q3 movement. HCLTech reversed a net decrease of 269 people in Q1FY26 by adding 3,489 employees on a net basis in Q2FY26. The corporation employed 5,196 new graduates during the September quarter, bringing the total number of graduate additions in the first half of FY26 to 7,180. According to the Q3 data, exits and targeted adjustments have decreased overall headcount, although entry-level recruiting has stayed unchanged.

There were indications that employee retention had improved. Despite net headcount remaining slightly negative, voluntary attrition decreased to 12.4% on a last-twelve-month basis, from 13.2% a year earlier, suggesting less churn. The slowing attrition trend is consistent with a more general stability in the Indian IT services industry, where high post-pandemic turnover has progressively become the norm. The comparatively stable staff at HCLTech stands in contrast to some of its counterparts' more drastic layoffs.

Following the announcement of plans to reduce approximately 2% of its staff as part of an ongoing restructuring effort, Tata Consultancy Services reported a net reduction of 19,755 employees in Q2FY26. In contrast to these actions, HCLTech has kept a more stable workforce. It has invested in talent that is in line with areas of growth like digital services, artificial intelligence, and engineering-led products.

Financial Outlook of HCLTech

The staff shift occurred during a period in which HCLTech reported robust revenue growth and margin recovery. However, the company's profitability was negatively impacted by restructuring expenses and the one-time effects of new labour laws. Despite double-digit revenue growth, the company reported a year-over-year drop in net profit for the December quarter as a result of one-off charges. An interim dividend of INR 12 per share was also declared by the board.

HCLTech's workforce statistics indicateindicate a balanced strategy rather than aggressive expansion or contraction, since attrition is decreasing and fresher hiring is ongoing. Analysts anticipate that in the upcoming quarters, IT services companies will continue to be cautious in hiring while placing a higher priority on productivity and skill alignment as client demand remains stable but discretionary expenditure is closely monitored.