Wipro
is reportedly cutting ‘hundreds’ of jobs in a bid to enhance its margins, which was 16% for the December quarter – significantly lower compared to
Tata Consultancy Services
(
TCS
) at 25%,
Infosys
at 20.5% and HCL Technologies at 19.8%.
Citing two sources familiar with the matter, The Economic Times reported that India’s leading IT company is in the process of slashing mid-level roles at its onsite locations.
“The intimations started being sent earlier this month. Hundreds of mid-level executives onsite are being let go,” a source was quoted as saying.
“They have very expensive resources onsite in Capco, and even though the growth is coming back, it is not enough.
Aparna
(Iyer - Wipro chief financial officer) has been tasked with showing better margins this quarter,” the source added.
In 2021, Wipro acquired consulting firm Capco for $1.45 billion, however, the consulting business slowed down as customers curbed spending after growth fell post-Covid and world economies cooled.
Another source familiar with the job cuts indicated that it's part of a 'Left-Shift' strategy, where tasks of higher-level employees are shifted downward, often with automation playing a role.
“The work of a level 3 employee is shifted to a level 2 employee, who is given appropriate tools. A level 1 employee does the level 2 work, and the idea is that the work of a Level 1 employee is automated,” said the second source.
What Wipro has to say
In response to queries from the publication, a Wipro spokesperson emphasised the company’s commitment to investing in people, processes and technology to meet evolving client and market needs.
“Aligning our business and talent to the changing market environment is a critical part of our strategy as we look to build a resilient, agile, and high-performance organisation,” the spokesperson was quoted as saying.
In the December quarter, Wipro's revenue fell 12% year-on-year – the fourth consecutive quarter in which the IT company reported a fall in profit.
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