Wipro, among the top IT giants, has recently announced that it will be reducing 'hundreds' of mid-level onsite roles as part of its efforts to enhance margins. With this latest development, the global trail of layoffs shows no signs of abating.
As per a report by the Economic Times, the process of notifying affected employees commenced earlier this month and various mid-level executives stationed onsite are facing termination as part of the ongoing job cuts at the company.
“The intimations started being sent earlier this month. Hundreds of mid-level executives onsite are being let go,” said a source cited in the report.
“They have very expensive resources onsite in Capco, and even though the growth is coming back, it is not enough. Aparna (Iyer - Wipro Chief Financial Officer) has been tasked with showing better margins this quarter,” the source further added.
In 2021, Wipro made its largest acquisition under CEO Thierry Delaporte by purchasing consulting firm Capco for nearly $1.5 billion. As post-COVID growth waned and the global economy tempered, the IT sector witnessed a slowdown due to reduced customer expenditures, marking a period of deceleration for IT business operations.
Another source cited by the report said that the layoffs are a part of the 'Left-Shift' strategy being adopted by the company. "The work of a level 3 employee is shifted to a level 2 employee, who is given appropriate tools. A level 1 employee does the level 2 work, and the idea is that the work of a Level 1 employee is automated.