Latest news with #NarayanaMurthy
India.com
18 hours ago
- Business
- India.com
Narayana Murthy's Infosys, Ratan Tata's TCS, or HCL: IT giants secretly using this formula for…, it's impacting employees due to…
Narayana Murthy's Infosys, Ratan Tata's TCS, or HCL: IT giants secretly using this formula for…, it's impacting employees due to… Seems like IT giants are on a layoff spree. First, IBM laid off 8,000 employees, and then Microsoft fired 9,000 IT professionals. Now, one of India's largest IT companies, TCS has laid off over 12,000 employees. This has happened when Indian IT companies' earnings have remained stable or have increased. These IT giants are moving away from the 'more people, more growth' formula and adopting the 'less people, more output' strategy. It is a bad time period for employees' perspective as these companies are continuously doing layoffs in large numbers, on the other hand, they have also stopped hiring, directly affecting freshers. IT giants like Infosys, Wipro and HCL are also included in these companies. They have slowed down fresh recruitment in recent months. Why IT Companies Laying Off Employees Even After Earning Profits? Notably, in the first quarter of the financial year 2026, in the month of April-June 2025, Ratan Tata's TCS reported revenue of Rs 63,437 crore which is an increase of 1.3 percent. Its profit also increased by 5.9 percent. On the other hand, Infosys's revenue increased by 7.5 percent to Rs 42,279 crore. Talking about earnings, IT giant HCL performed better than other IT companies, showing growth of 8.1 percent. Notably, the companies reduced the workforce during these periods but their numbers remained stable. TCS began FY26 with a challenging quarter and fired more than 12,000 employees, 2 percent of its workforce. Infosys recruited only 15,000 trainees in FY 2025, a decrease compared to previous years. Similarly, HCLTech has slowed down its hiring process. This move indicates that while IT companies are earning profits, their employee numbers are not increasing. What Is The Real Reason Behind The Job Cuts? The two major reasons behind the reduction of employees are – trend of AI and the breakdown of the pyramid model in recruitment. Impact of AI and automation: TCS, Infosys, and HCLTech are using AI and Gen AI to complete their tasks. This step has increased the speed and efficiency of work but also reduced the workforce. According to TCS CEO K Krithivasan, the ways of working are changing; we have to be prepared for the future. That is why we have implemented AI on a large scale. Breaking Of The Pyramid Model: Companies used to follow the pyramid model—recruiting more people from the bottom (like freshers) and less at the top level. As AI is doing all the basic work itself, companies are moving towards skill-based hiring. Amid all this, getting a job has become more difficult for freshers. Companies like Infosys have made the training and selection process more stringent.
India.com
3 days ago
- Business
- India.com
Ratan Tata's TCS, Narayana Murthy's Infosys, Azim Premji's Wipro, HCLTech; Indian IT companies are sacking employees despite profits due to...
Narayana Murthy, Late Ratan Tata and Azim Premji- File image (Left to right) Major IT companies like TCS, HCLTech and Infosys have announced massive layoffs in the recent weeks despite steady revenue growth, leading to several questions. As per the recent update, major Indian IT companies like TCS, Infosys, Wipro, and HCLTech are cutting jobs and slowing hiring. TCS laid off over 12,000 employees (2%), Infosys paused fresher onboarding, and Wipro is trimming roles selectively. However, readers should note that the layoffs aren't due to financial distress. In fact, the IT companies saw Q1 FY26 saw revenue growth. Why IT companies are doing mass layoffs? Experts say that the traditional headcount-driven growth model is being replaced by automation-led productivity, with GenAI and intelligent platforms reducing dependence on entry-level hiring. Reports also say that the IT firms are abandoning the old pyramid structure, raising the bar for fresher training, and focusing recruitment on niche skills like AI, cloud, and cybersecurity. Consequently, revenue per employee is rising, and bench strength is shrinking, leading to more and more layoffs. Reports also say that the layoffs reflect a strategic pivot toward automation, AI integration, and a more lean, skills-based workforce rather than financial distress. TCS shares trade lower after layoff of 12,200 employees As a result of the lay off news, shares of tech major Tata Consultancy Services (TCS) were trading lower on Monday. As per a report by IANS news agency, the share had slipped 1.7 per cent to an intra-day low of Rs 3,081 on BSE. India's largest IT exporter on Sunday announced plans to lay off around 2 per cent of its global workforce. The IT giant which has a total headcount of 6.13 lakh employees as of June 2025, plans to implement the layoffs across various domains and geographies. In a statement, the company said the layoffs would primarily impact middle and senior grades. TCS CEO K Krithivasan described the decision as 'one of the toughest' he had to make and said it is aimed at making the company 'future-ready and agile' in the face of rapidly evolving technologies and workplace models. (With inputs from agencies)
India.com
23-07-2025
- Business
- India.com
Big update for Infosys employees on salary hike, Narayana Murthy's IT company says ‘next one we'll have to…'
Narayana Murthy (File) Infosys, India's second-largest IT services firm, is yet to take a call on its next round of salary hikes, even as it recently rolled out a wage increase and reported a strong quarterly performance. The company posted a 9% year-on-year rise in consolidated net profit to Rs 6,921 crore for the first quarter of FY26. Speaking after the results, Chief Financial Officer Jayesh Sanghrajka said Infosys had paid a 'higher' variable pay to employees during the quarter. However, he added that the timeline for the next salary hike is still under discussion. Infosys CFO On Salary Hike 'In the margin of this quarter, we had 100 basis points of impact on account of wage hike as well as the higher variable pay that we paid to our employees this quarter, so that's already done. Having done the wage hike very recently, you know, next one we'll have to decide when,' said the CFO. While talking on the history of wage hikes this year, Infosys' CFO said that the company implemented the first part of its salary hikes from January 2025, and the second was rolled out effective 1 April 2025. 'We did a wage hike already. First part of our hikes was effective January 2025; the second phase is already rolled out, effective 1 April 2025, and the impact of that is already baked in,' said Sanghrajka in the press conference after the company's April-June quarter results announcement. Infosys Headcount The total headcount rose marginally by 210 employees during the course of the quarter, bringing the workforce to 323,788 level, an increase of 2.6 per cent year-on-year. The company said it is on track to hire 20,000 freshers this fiscal year, as announced earlier. Financial services remained the largest sector, contributing about 27.9 per cent of total revenue in Q1 FY26, followed by manufacturing at 16.1 per cent and retail at 13.4 per cent.
India.com
23-07-2025
- Business
- India.com
Good news for Narayana Murthy, Infosys earns Rs 69210000000 in…, CEO Salil Parekh says…
Narayana Murthy (File) Infosys Ltd on Wednesday reported an 8.7% year-on-year increase in net profit for the June quarter, while also narrowing its full-year revenue guidance following better-than-expected earnings growth. The IT major posted a consolidated net profit of Rs 6,921 crore for the April–June quarter of FY2025-26, up from Rs 6,368 crore in the corresponding period last year, the company said in a statement. Infosys Q1 Results The IT services company narrowed its annual revenue growth forecast to 1 per cent to 3 per cent band from a prior 0-3 per cent range. Revenue from operations at Rs 42,279 crore was 7.53 per cent higher year-on-year and 3.3 per cent quarter-on-quarter, on the back of strong performance in AI and deal wins. Net profit however fell 1.5 per cent sequentially when compared with the January-March quarter. 'Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees. Our large deal wins of USD 3.8 billion reflect our distinct competitive positioning and deep client relationships,' Infosys CEO and MD Salil Parekh said. Infosys CEO Salil Parekh On Q1 Results Briefing media at the Q1 earnings call, Parekh noted that the start to financial year had been strong. 'The main drivers of our growth were a leadership in enterprise AI, and a continued success in clients selecting us for consolidations. We are seeing good demand for AI agents,' he said. Geographically, North America accounted for 56.5 per cent of quarterly revenue, down from 58.9 per cent in the corresponding period of the previous fiscal. Europe increased its share to 31.5 per cent, up from 28.4 per cent in the Q1 FY25. Infosys CFO Jayesh Sanghrajka said that Europe has been strong footing for the company for past many quarters. 'That's on the back of the investment that we made a few years back in Europe. We had identified Europe as a geography to invest into and all of that is working well across sectors….but still, US remains the largest geography for us,' Sanghrajka said. The Large Deal TCV (or total contract value) stood at USD 3.8 billion.
The Hindu
22-07-2025
- General
- The Hindu
Free introductory course on meditation
The Institute of Sri Ramachandra Consciousness (IRSC) will organise a free two-day introductory course on 'Pranahuti Aided Meditation' at its Visakhapatnam centre at Kurmannapalem on July 26 and 27. The introductory course will be held from 9 a.m. to 6 p.m. on both days. Registration will end on July 25, according to Y. Narayana Murthy of IRSC Vizag centre. For registration and more information, contact mobile no.'s 8500094810 or 9490423383. They can also log on to the website:
