Wipro to sack hundreds of mid-level employees to improve margins

As per the reports of the ET, India’s IT services provider company, Wipro to sack hundreds of mid-level employees to improve margins

Wipro currently maintains the lowest profit margins among the top four IT services companies listed in India. Below is the comparative Net Profit in crore

In the third quarter ending on December 31, 2023, the company reported a Net profit of INR 2,694, which lowest among the top four India’s IT companies.

While announcing Q3FY24, Aparna C. Iyer, Chief Financial Officer, said, “I am pleased with our rigor of execution across all financial metrics- revenue, margin, EPS, and cash flow.”

“We are building a more resilient, agile, and efficient organization which has helped us sustain our margins at 16%, a 63 basis point improvement on a year-to-date basis despite revenue headwinds and absorbing the impact of the investments we are making for growth and people”, Aparna C. Iyer added.

On the other end, Tata Consultancy Services, Infosys, and HCL Technologies reported margins of 25%, 20.5%, and 19.8% respectively.

In 2024, there is a new wave of layoffs all over the world in the tech industry. So far in 2024, there have been 176 layoffs at tech companies with 38,003 people being laid off (1,267 people per day).

And, in early 2024, most people are being laid off because of the integration of Generative AI displacing jobs and with few companies’ economic situations again.

The repetitive jobs that can be performed by Artificial Intelligence will be obsolete. In January 2024 several companies including Flipkart, Salesforce, Microsoft, Google, eBay, Amazon, and Bosch have sacked several employees.

Earlier Wipro Layoff

In September 2022, Wipro sacked 300 employees who were found working with its competitor companies at the same time as employment with Wipro.

Wipro Chairman Rishad Premji that time, these employees had been terminated for an “act of integrity violation”.

“The reality is that there are people today working for Wipro and working directly for one of our competitors and we have discovered 300 people in the last few months who are doing exactly that,” Rishad Premji said speaking at AIMA’s (All India Management Association) National Management Convention.

“If you look at the definition of Moonlighting, it is having a second job secretively…I’m all about transparency.  As a part of transparency, individuals in organizations can have very candid conversations,” he said, where someone may want to play in a band or work on a project over the weekend.

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