In a concerning development for jobseekers in the IT sector, major players Cognizant and Capgemini have reported a significant decline in their global hiring numbers for the year 2023 compared to the previous year. According to regulatory filings, the cumulative hiring by these two companies dropped by a staggering 151,607 employees.
Both Cognizant and Capgemini have a large portion of their workforce based in India, with a combined total of around 400,000 employees in the country. In 2022, Cognizant hired 132,000 employees, while Capgemini recruited 140,789. However, in 2023, Cognizant hired just over 60,000 and Capgemini hired about 61,182, marking a significant decrease in hiring numbers for both companies.
This trend is not limited to just these two companies, as other Indian IT giants like Tata Consultancy Services, Infosys, and Wipro have also reported a drop in their headcount, totaling around 70,000 fewer employees in the fiscal year ending March 31.
The decrease in hiring is attributed to macroeconomic uncertainty, leading companies to reduce new talent intake. Cognizant, for example, incurred significant costs related to employee separations and facility exits in 2023, totaling $229 million.
Tech influencer Deedy Das has raised concerns about the future of the tech engineering industry, pointing out the challenges faced by big tech companies like Microsoft, Google, Amazon, Tesla, Apple, and Meta. With layoffs and reduced headcounts becoming more common, the industry may be heading towards a challenging period ahead.