Global hiring at IT giants Cognizant and Capgemini took a sharp downturn in 2023, shedding a combined total of 1,51,607 employees compared to the previous year. In India alone, where they collectively employ about 4,00,000 people, the numbers took a hit, as per a report by Economic Times (ET) citing regulatory filings.
In 2022, Cognizant brought on board 1,32,000 employees, while Capgemini recruited 1,40,789, excluding acquisitions. However, in 2023, Cognizant’s hires plummeted to just over 60,000, and Capgemini’s dropped to around 61,182. This indicates a decline of 72,000 for Cognizant and 79,607 for Capgemini from the previous year.
The trend extends to other major Indian IT players such as Tata Consultancy Services, Infosys, and Wipro, which collectively saw their headcount shrink by approximately 70,000 by the end of the financial year on 31 March. Macro uncertainties and the belief that advancements in technologies such as generative artificial intelligence (Gen AI) may lessen the need for fresh hires could be contributing factors.
The pandemic-induced over-hiring in the tech industry may also be playing a role in the decline.
To streamline its operations and corporate functions, Cognizant launched a programme in Q2 2023, incurring employee separation costs of $115 million and $114 million in facility exit and other expenses throughout the year.
By the end of March 2024, Cognizant’s headcount dropped by 7,100 to 3,44,400, with around 2,50,000 employees based in India. Similarly, Capgemini Group’s total headcount fell to 3,37,200, marking a six per cent decrease from the previous year.
Information Technology roles are expected to remain dominant, but recruitment in non-IT sectors is also projected to see significant activity. Nonetheless, recruiters foresee attrition rates staying below 15 per cent from January to June 2024, showing a slight improvement from previous quarters.
