Wipro layoff: There have been reports of layoffs once again in the country’s leading IT company Wipro. There is a possibility of layoff of more than 100 mid-level employees of the company. Through this the company wants to improve the margin.
Let us tell you that Wipro currently has the lowest margin among the top 4 India-listed IT companies. This is the reason why there is pressure on the company to increase profits. In contrast to Wipro’s 16% margin during the December quarter, rivals Tata Consultancy Services, Infosys and HCL Technologies have achieved margins of 25%, 20.5% and 19.8%, respectively, The Economic Times reported.
Reason for the decision
This decision is attributed to the expensive resources of the company in British consultancy company Capco. Let us tell you that Capco was acquired by Wipro in the year 2021 for $ 1.45 billion. It is a consultancy firm whose CEO is Thierry Delaporte. However, as global economic conditions fluctuated post-Covid, the business slowed down. This has also affected Wipro’s business.
According to ET Prime news, Wipro spokesperson emphasized on business strategies along with market outlook. Wipro spokesperson reaffirmed the company’s commitment to enhancing customer, employee experiences through investment in technology and talent.
Declining number of employees
Recently, Wipro had released its December quarter results. During this period, Wipro’s employee count declined for the fifth consecutive quarter. There were 4,473 fewer employees in the December quarter than in the previous quarter. The company’s employee strength in the December quarter is 2,40,234.
Meanwhile, on Wednesday, the third trading day of the week, Wipro’s share price was at Rs 475. The stock was in the green zone during trading. This share had reached 52 week high of Rs 526.45 on February 15 last.