In FY25, for the first time since FY17, both Wipro and Tech Mahindra reported a simultaneous drop in median employee remuneration, reflecting strategic shifts in hiring and cost management. Wipro’s median salary dipped by 0.6% to ₹9.78 lakh, while Tech Mahindra saw a sharper 6.52% decline, with male employees earning ₹18.3 lakh and female employees ₹15.4 lakh.
Cost Optimization and Leadership Overhaul Reshape Workforce Strategy
Analysts attribute this to aggressive cost optimization, as both companies hired more freshers and junior-level employees to replace mid- and senior-level staff. Wipro added 732 employees, and Tech Mahindra hired 3,276, leading to a downward shift in salary averages. This approach aligns with their broader margin-focused strategies.
Adding to the structural change, both firms saw significant leadership churn. Over 20 senior leaders exited Tech Mahindra since March 2024, and Wipro lost more than 30 senior executives in two years. To stabilize operations, they focused on internal promotions and strengthening mid-level management.
Diverging Pay Trends as Firms Balance Margins Amid Revenue Slump
In contrast, TCS and Infosys increased their median salaries by 6.3% and 9.6% respectively, maintaining a consistent upward trend. HCLTech has yet to release its report but has never posted a fall in median pay over the last decade. Notably, Tech Mahindra has cut median pay six times in ten years, while Wipro has done so three times.
Despite the cuts, both firms improved margins—Wipro’s rose by 100 basis points to 17.1%, and Tech Mahindra’s by a significant 360 basis points to 9.7%. However, revenues fell for the second consecutive year—Wipro by 2.72% and Tech Mahindra by 0.21%. Experts suggest that these changes reflect a strategy to stay competitive by leveraging a surplus of experienced professionals in a sluggish job market, reducing salary expenses while preserving capability.
Summary:
In FY25, Wipro and Tech Mahindra cut median salaries due to cost optimization and leadership churn, while hiring more freshers. Despite revenue declines, both firms improved margins. In contrast, TCS and Infosys raised pay. Experts say this reflects a strategy to remain competitive in a sluggish job market while reducing costs.
