India Inc cuts volume hiring: Companies go selective on STEM freshers – here’s why
India Inc is dialing back hiring of fresh graduates, especially those from science, technology, engineering and mathematics (STEM) backgrounds, as companies turn more selective and focuses on industry-ready talent.Around 200,000–220,000 STEM freshers were hired in FY25, but this number is expected to fall to a little over 150,000 in the current fiscal, according to a study by staffing and recruitment firm TeamLease, ET reported.The trend highlights a shift in hiring strategy, with companies preferring smaller, skilled teams over large workforces.
Firms look for job-ready talent
Industry experts and startup founders told ET that even fresh graduates are now expected to work with cloud platforms, data pipelines, automation and AI tools, raising the bar for entry-level hiring.“We see only 70-74% firms planning fresher hiring this fiscal as companies are more selective in their intake,” said Neeti Sharma, CEO, TeamLease Digital.Many companies, particularly startups, are moving towards leaner teams while continuing to hire selectively in areas such as AI and data analytics.
Startups go lean, focus on AI
Edtech and study-abroad firm Leverage Edu has reduced its headcount to about 900 employees, down from a peak of over 1,400 in the last two to three years.“The focus remains on bringing in people who are mission-aligned, high on integrity, and obsessed with doing right – DNA / culture is everything,” said Akshay Chaturvedi, founder, Leverage Edu, ET reported.He added that the company is focused on strengthening AI talent while hiring senior business development leaders across markets.
Hiring numbers show sharp decline
According to the TeamLease study, STEM fresher hiring fell to 230,000 in FY23 from 400,000 a year earlier, and dropped further to 150,000 in FY24.Sharma said hiring improved by 15–18% last fiscal year, supported by a recovery in hiring sentiment and growing demand for AI and cloud-related skills.Salaries at the entry level also reflect the shift towards skilled hiring.
Within STEM roles, software engineering and data profiles saw the highest salary growth, rising to Rs 5 lakh annually in 2025, from Rs 3.5 lakh in 2020, the study said.The average annual salary for STEM freshers increased to around Rs 4 lakh in 2025, up from Rs 3 lakh in 2024.“This change is primarily due to a reset in entry-level tech hiring, moving away from volume coding roles to AI-adjacent, data-first profiles,” Sharma said.The preference for skills over numbers is evident across sectors.
