Wipro’s Approach
Wipro has apparently written notifications to hundreds of mid-level executives since these personnel are “very expensive resources” onsite in Capco, a consultancy firm that it acquired in 2021.
Wipro, an information technology services firm, claimed on January 31 that it is “aligning” its talent with the “changing market environment” in response to media claims of layoffs at mid-level onsite roles in the company to boost profits.
“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 organization,” Wipro stated in a statement to Moneycontrol.
According to an ET Prime article quoting a source, Wipro notified hundreds of mid-level executives onsite earlier this month since these personnel are “very expensive resources onsite at Capco.”
Wipro purchased Capco, a consulting company, in 2021.
The report further stated that Wipro Chief Financial Officer Aparna Iyer has been entrusted with improving margins in the January-March quarter.
According to a second source referenced in the paper, the job layoffs are part of a ‘Left-Shift’ strategy, in which the work of a level 1 employee is mechanized. While a level 3 employee’s work is delegated to a level 2 employee who is provided suitable equipment, a level 1 employee completes the level 2 work, according to the article, citing a source.
The Bengaluru-based company has the lowest operating margins among the four top IT firms in India. Wipro’s sales decreased by 12% year on year in the December quarter. The company’s profit fell for the fourth consecutive quarter.
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