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Wipro eliminates mid-level positions as profit margins shrink.

Wipro eliminates mid-level positions as profit margins shrink.

Wipro, the Indian IT services giant, is going through a significant restructuring to address the economic challenges caused by the COVID-19 pandemic. The goal of the restructuring is to improve profit margins, which have been under pressure due to the lowest margins among the top four India-listed IT services firms. In the December quarter, Wipro’s margin was 16%, while TCS had a margin of 25%, Infosys 20.5%, and HCL Tech 19.8%.

As part of its restructuring, Wipro is targeting the elimination of “hundreds” of mid-level roles at its onsite locations. The focus is on mid-level executives stationed onsite, with termination notices issued earlier this month. The restructuring is primarily aimed at streamlining operations by delegating tasks traditionally handled by higher tiers to lower ones, leveraging automation and optimizing efficiency.

Wipro’s “Left-Shift” strategy is critical to the restructuring plan, which aims to balance margin improvement and sustainable growth. The company aims to enhance client and employee experiences by investing in technology and talent development, despite the need for cost optimization.

However, the restructuring has been met with criticism, with some questioning its impact on employee morale and the loss of senior talent. CEO Thierry Delaporte has emphasized the company’s commitment to aligning business strategies with the evolving market landscape, while balancing margin improvement and sustainable growth.

Wipro’s cost-cutting measures are part of a broader trend in the tech industry, where companies are implementing job cuts to improve profit margins. Wipro’s strategic restructuring aligns with its vision to build a resilient, agile, and high-performance organization in a rapidly evolving market environment.

Recent financial results showed a decline in Wipro’s total headcount for the fifth consecutive quarter, reporting a net reduction of 4,473 employees during the October to December quarter of 2023. However, the attrition level eased, reaching a 10-quarter low of 14.2% for the third quarter of the financial year.


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