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Sensex Firms Slash New Hires by 27% in Two Years
3 Aug
Summary
- Nine Sensex companies saw new hires fall 27% in FY26 from FY24.
- Automation and rising productivity are key drivers for reduced hiring.
- Public sector banks like SBI reported significant hiring increases in FY26.
In recent fiscal years, many of India's leading companies have curtailed their fresh hiring. Analysis of 30 Sensex companies indicates that nine firms experienced a 27% reduction in new hires between FY24 and FY26. This decline is primarily driven by advancements in automation and enhanced productivity, allowing companies to achieve growth with a leaner workforce.
Factors such as geopolitical tensions, including the West Asia War and the Russia-Ukraine conflict, have also contributed to a more cautious approach toward hiring and investment. Companies are increasingly relying on technology and AI-powered tools to manage operations more efficiently, leading to a reduced need for transactional roles.
Despite the overall trend, some public sector undertakings have seen an uptick in recruitment. State Bank of India, for instance, reported a significant rise in hiring in FY26, bringing in over 25,000 new recruits. Power Grid also experienced a jump in its hiring numbers for the same fiscal year, demonstrating varied hiring strategies across different sectors and company types.
