Narayan AmmachchiIT services giant Wipro finds itself in the headlines again, this time over reports of large-scale layoffs targeting hundreds of its mid-level IT professionals.
This news comes amidst ongoing speculation about the potential replacement of the company’s CEO, Thierry Delaporte.
The Economic Times, a leading Indian business daily, first reported the potential layoffs, citing a desire to improve profit margins and regain investor confidence in the wake of a declining stock price.
Wipro’s leadership has neither confirmed nor denied the reports, reiterating its stance that aligning business and talent with the evolving market environment is a key strategic priority.
The reported layoffs are said to primarily impact employees from Capco, a consulting firm acquired by Wipro in 2021 for US$1.45 billion. The acquisition, which added around 5,000 workers to Wipro’s headcount, coincided with a pandemic-driven surge in demand for IT services, which has since slowed down.
A host of Wipro employees in India told NSAM that the were not losing jobs but that former Capco employees could be targeted. Some analysts say the salaries of Capco employees are generally higher than those of their colleagues. IT service providers in India typically spend 60% of their income on salaries.
Wipro’s stock price has plummeted by 40% since its December 2021 peak, fueled by weak financial performance and a string of executive departures, including CFO Jatin Dalal, Americas’ CEO Angan Guha, and COO Sanjeev Singh.
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