Wipro is allegedly preparing to hand pink slips to hundreds of employees, primarily targeting mid-level executives to shore up its margins – the lowest among top-tier Indian IT firms. Sources cited remedial interventions being deployed under CFO Aparna Iyer after recent large deal wins failed lifting growth and profitability.
The move follows global tech majors that trimmed headcounts in 2022 amid funding winter and client belt-tightening. But critics argue the steps risk higher attrition without addressing capability issues that impeded Wipro’s outperformance historically.
‘Left-Shift’ Strategy Causes Workforce Discomfort
Reports reveal Wipro’s ongoing ‘Left-Shift’ blueprint is reassigning responsibilities across levels to improve cost efficiency. While Level 3 tasks move to Level 2 with extra enablement, Level 1 absorbs Level 2 workloads as automation tackles the bottom ladder through targeted redundancy.
But the reshuffle causes resentment due to distressed transitions and perceptions of demotion for marginal gain. Critics also blame CEO Delaporte for the talent exodus triggered and botched integration of consulting firm Capco acquired for $1.45 billion under him.
Company Pledges Responsible Restructuring
Responding to media queries, Wipro stated realignments are critical to boost lagging productivity, client delight and keep pace with rapidly evolving industry dynamics. While investment in people remains integral, prudent calibration to prevailing conditions is vital.
By streamlining operations and skillsets tuned to shifting requirements, the company contends responsible workforce rationalization can unlock savings for ploughing back into strengthening digital capabilities. Financial analysts too favour margin improvement to close market valuation gaps with faster-growing rivals.
