Wipro To Fire Hundreds Of Mid-Level Employees To Improve Profit Margins: Reports

New Delhi: Wipro, a prominent player in the Big Tech industry, is set to reduce 'hundreds' of mid-level positions at its onsite locations in an effort to enhance profit margins, according to recent reports (Economic Times). Wipro currently maintains the lowest profit margins among the top four IT services companies listed in India.

In the December quarter, Wipro's margin was recorded at 16 per cent, whereas Tata Consultancy Services, Infosys, and HCL Technologies reported margins of 25 per cent, 20.5 per cent, and 19.8 per cent, respectively. Intimations of these workforce adjustments began surfacing earlier this month, with reports indicating the departure of numerous mid-level executives at onsite locations. (Also read: iRobot To Fire 350 Employees As Deal With Amazon Is Killed)

In 2021, Wipro made its largest investment under CEO Thierry Delaporte by purchasing consulting firm Capco for 1.45 billion dollars. Unfortunately, the consulting business faced challenges as post-Covid growth declined and global economies experienced a slowdown, leading to reduced customer spending. 

According to Peter Bendor-Samuel, CEO, IT consultancy Everest Research said that “Wipro still has both a talented workforce and leadership team. However, execution is an issue and Wipro continues to underperform against its peers. I believe Wipro is trying to do too much too quickly. It is trying to address its margin and profitability at the same time it is attempting to regain its growth leadership and market differentiation". (Also Read: Budget 2024: Govt Cuts Import Duty For Parts Used in Mobile Phones To 10 Percent)