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Infosys says no campus hiring this year, laments 'significant fresher bench'
Infosys reports net profit of ₹6,212 crore and 7% increase in revenue in Q2FY24.
Infosys has disappointing news for this year's engineering graduates. After hiring over 50,000 freshers last year, the company has decided to abstain from campus recruitment this time, as it aims to "enhance utilisation".
The Bengaluru headquartered IT giant's Chief Financial Officer Nilanjan Roy, during the second-quarter earnings call, said the company currently boasts a significant fresher bench and there is room for enhanced utilisation.
Roy said: "Last year, we hired 50,000 freshers and hired ahead of demand...we still have a significant fresher bench... we are, of course, training them on Gen AI, SAP etc., but we still have a way to go on utilisation, and at the moment are not going to campuses as yet...we will monitor this every quarter looking at our future projections."
However, Roy emphasised the company remains committed to honouring all job offers extended and onboarding graduates as projects become available.
In this quarter that ended in September, the Indian software company reported a headcount shrink by 7,530 employees, continuing the reduction trend in the third consecutive quarter.
"In terms of margin aspirations, we acknowledge that we have inefficiencies in our entire structure... such as in our pyramid structure... our utilization is at 81.8 per cent... in fact, it leads to the same question. We had a headcount reduction of 7,000, but our utilisation only improved by 70 basis points. So, we still have room for improvement in utilisation as we continue to grow," he added.
The company announced that wage hikes are currently being implemented and will be delivered to all employees from November 1.
Infosys has a total employee strength of 3,28,764, as stated in the Q2FY24 earnings report. Of this, a huge 3,10,375 are software professionals, predominantly from engineering backgrounds.
Infosys Ltd, the second-largest software services exporter, announced its quarterly results for the period ending in September. The company reported a net profit of ₹6,212 crore, accompanied by a 7 per cent increase in revenue. Additionally, Infosys declared an interim dividend of ₹18 per share, representing a 9.1 per cent increase compared to the previous year.
