Over 6,100 Employees Left Tech Player Infosys In Q3FY24; Attrition Rate Continues To Decline

More employees continued to leave tech giant Infosys even during October to December 2023 quarter. Although, sequentially, number of employees exiting Infosys in Q3FY24 was lower compared to the number of employees that left in Q2FY24. Infosys attrition rate has dropped significantly to 12.9% by end of December quarter for FY24.

In Q3FY24, as per the financial report, Infosys' headcount stood at a total of 322,663 employees, which is fewer by 6,101 people from the headcount of 328,764 employees by end of September 2023 quarter.

But on a year-on-year basis, a massive 24,182 employees have exited Infosys compared to total headcount of 346,845 people as of December 31, 2022.

The latest drop in headcount is slower than compared to the decline of 7,530 employees in Q2FY24.

In respect to categories, Infosys S/W professionals count stood at 304,590 people as of December 2023 quarter -- which is fewer by 5,785 employees from 310,375 professionals as of September 2023, and also lesser by 24,706 employees from 329,296 professionals as of December 2022.

Employees in sales and support team also left, however, the decline was fractional. This department had a total headcount of 18,073 employees as of December 2023, which is lower by 316 people against the count of 18,389 employees as of September 2023. Meanwhile, on year-on-year, this department saw 524 people exiting compared to the total count of 17,549 employees as of December 2022.

Infosys voluntary attrition (LTM-Services) rate declined to 12.9% by end of Q3FY24 as against 14.6% in Q2FY24 and 24.3% in Q3FY23.

Also, the percentage of women employees in Infosys has been stagnant to 39.3% in Q3FY24 versus 39.4% each in Q2FY24 and Q3FY23 respectively.

In November last year, declared its own compulsory hybrid policy where employees will be required to attend office locations for at least 10 days each month.

Infosys Hybrid Workplace solution is a unified platform to allow organizations provide seamless experience for their employees while they work from home or office. This solution provides unique seamless experience for employees and teams for a perfect mix between office & remote work. Workplace visibility and planning capabilities enables optimal usage of office spaces. This solution is realized by leveraging Microsoft Power Platform and Microsoft's extended stack. It is enabled to sit on top of any ecosystem.

On Thursday, Infosys announced that it allotted 5,227 equity shares, pursuant to exercise of Restricted Stock Units by eligible employees. Of the total, 4,327 equity shares under the 2015 Incentive Compensation Plan, and 900 equity shares under the Infosys Expanded Stock Ownership Program 2019.

Despite reporting a bleaker third quarter, tech giant Infosys has revised its FY24 guidance. The company raised its lower-end of FY24 guidance for revenue growth in constant currency, but trimmed its upper-end. Meanwhile, Infosys maintained its operating margin guidance.

As per the regulatory filing, Infosys revised FY24 revenue guidance is in the growth rate of 1.5%-2.0% in constant currency. Earlier, the revenue growth was expected at the lower end of 1%, and upper end of 2.5%.

Meanwhile, Infosys maintained its operation margin guidance of 20%-22%.

Infosys reported a consolidated net profit of Rs 6,106 crore in the third quarter of FY24, which declined by 7.3 % year-on-year and 1.7% quarter-on-quarter. Also, consolidated revenue came in at Rs 38,821 crore in Q4FY24, registering a marginal growth of 1.3% YoY but slipped -0.4% QoQ.

IT companies are struggling with challenging macro conditions especially in North America. There are higher-than-normal furloughs for some companies. Further, the slowdown in discretionary spending continues.