Wipro To Lay Off Hundreds Of Mid-Level Employees: Report (Image: Wipro)
IT giant Wipro is reportedly in the process of cutting ‘hundreds’ of mid-level roles onsite. The Economic Times reported that Wipro is making this move as part of attempts to improve its margins. The tech industry around the globe is currently witnessing a new wave of layoffs.
The Economic Times, citing sources, reported that the process of notifying affected employees commenced earlier this month. The source also said that “hundreds of mid-level executives” onsite are facing termination. “They have very expensive resources onsite in Capco, and even though the growth is coming back, it is not enough,” source added, as quoted by the Economic Times. Notably, Wipro acquired London-based global management and tech consultancy Capco in 2021. It was a USD 1.45 billion deal.
However, the report says that consulting businesses slowed down as customers reduced spending. This is likely to have resulted in cost-cutting measures. Meanwhile, a Wipro spokesperson told ET that aligning the business and talent to the changing market environment is a critical part of the company”s strategy. The spokesperson also said that Wipro aims to improve client and employee experiences and adapt to fast-evolving market needs.
Peter Bendor-Samuel, CEO of IT consultancy Everest Research, told ET that Wipro still has both a talented workforce and a leadership team. However, Peter Bendor-Samuel also said that execution is an issue and Wipro continues to “underperform” against its peers. “I believe Wipro is trying to do too much too quickly,” he said, as quoted by ET. Recently, Wipro marked a 11.74 percent decline in its consolidated net profit to Rs 2,694.2 crore in the third quarter ended December 31, 2023.
