Wipro Gets Ready To Layoff Hundreds To Bring Margins In Line With Rivals: Report

Wipro is reportedly in the process of cutting “hundreds” of mid-level roles onsite in an effort to boost its margins.

What Happened: The company aims to improve its margins, which are the lowest among the four largest India-listed IT services firms, two sources familiar with the matter told the Economic Times.

For the December quarter, Wipro reported a margin of 16%, while TCS, Infosys and HCL Technologies reported margins of 25%, 20.5% and 19.8%, respectively.

See Also: Tata Group Up Against Seasoned Foreign Firms In Bid For $1B Govt Chip Lab Revamp

The move comes as Wipro faces challenges with expensive resources onsite, particularly following its acquisition of consulting firm Capco for $1.45 billion in 2021. The consulting business slowed down after COVID-19 as customer spending decreased.

One source told the business daily that the job cuts were part of a “Left-Shift” strategy, where work is shifted from level 3 to level 2 employees, with the ultimate goal of automating level 1 employee tasks.

These measures are being implemented as Wipro’s CEO Thierry Delaporte faces the challenge of balancing margin improvement and growth goals while addressing concerns about the loss of senior talent and the impact on employee morale.

Price Action: Wipro’s share price climbed up to 1.24% to ₹478.35 following the report.

Read Next: India’s Budget Day Nears: Crypto Sector Eyes Tax Reforms and SRO Establishment

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Comments
Loading...
Posted In: EquitiesNewsManagementMarketsMoversTrading IdeasHCL TechinfosysTCSWipro

Loading...