HCLTech Workforce Shrinks Amidst Strong Profit Growth and AI Investments

HCLTech has reported a significant reduction in its workforce, losing 3,292 employees in the June quarter of FY27, bringing its total to 223,889. Despite this decline, the company achieved a remarkable 20% year-on-year increase in net profit, reaching Rs 4,624 crore. HCLTech also announced a substantial investment of Rs 3,500 crore to establish AI data centers, aiming to capitalize on the growing demand for AI solutions. This article delves into the company's financial performance and future plans in the AI sector.

By Narendra Chaudhary Jul 13, 2026, 19:29 IST

HCLTech Workforce Reduction and Financial Performance

In the June quarter of FY27, HCLTech experienced a workforce reduction, shedding 3,292 employees, which brought its total workforce down to 223,889. This decline follows a net increase of 802 employees in Q4FY26, when the company had a workforce of 227,181. Previously, in Q3FY26, HCLTech had also reported a decrease of 261 employees. In Q4FY26, the company had welcomed 1,712 fresh graduates, while the voluntary attrition rate was noted at 12.5 percent over the past year. However, the latest earnings report did not provide details on fresh hiring or attrition rates.

In contrast, Tata Consultancy Services (TCS) added 9,279 employees during the same timeframe. Despite the workforce reduction, HCL Technologies reported a significant 20 percent year-on-year increase in net profit for the June quarter, amounting to Rs 4,624 crore, surpassing expectations. This is an increase from Rs 3,843 crore in the first quarter of the previous fiscal year, with a sequential profit rise of 3 percent.

The company's operational revenue for the quarter was Rs 34,579 crore, up from Rs 30,349 crore in the previous quarter. Additionally, HCL Technologies announced plans to invest Rs 3,500 crore to set up AI data centers, which could potentially reach a capacity of 50 MW. CEO C Vijayakumar emphasized that the growing demand for AI, coupled with supply constraints and the push for digital sovereignty, presents a significant opportunity for HCLTech to become a comprehensive AI technology solutions provider. He stated, “Our entry into the AI data center space positions us to capture the full value of this opportunity, as the industry transitions from physical infrastructure to higher-value, AI-ready solutions.”