Wipro to lay off hundreds of mid-level employees to improve margins, ETHRWorld

Wipro is in the process of cutting ‘hundreds’ of mid-level roles onsite as it attempts to improve its margins, two sources with knowledge of the matter told ET Prime.

Wipro has the lowest margins amongst the four largest India-listed IT services companies. For the December quarter, its margin came in at 16%. Tata Consultancy Services, Infosys and HCL Technologies reported margins of 25%, 20.5% and 19.8% respectively.

“The intimations started being sent earlier this month. Hundreds of mid-level executives onsite are being let go,” said a source informed of the job cuts.

“They have very expensive resources onsite in Capco, and even though the growth is coming back, it is not enough. Aparna (Iyer – Wipro Chief Financial Officer) has been tasked with showing better margins this quarter,” the source added.

Wipro had acquired consulting firm Capco for $1.45 billion in 2021, making this CEO Thierry Delaporte’s biggest bet. However, as post-Covid growth fell and world economies cooled, the consulting business slowed down as customers curbed spending.

“Aligning our business and talent to the changing market environment is a critical part of our strategy as we look to build a resilient, agile, and high-performance organisation,” a Wipro spokesperson said in…