NEW DELHI: Wipro is reportedly planning to cut hundreds of mid-level roles at its onsite locations.
This is mainly to enhance its margins. In Q3FY24, for the fourth consecutive quarter, the company reported a fall in its consolidated net profit at Rs 2,694 crore. The firm’s IT services operating margin in stood at 16.0%, down 11 bps sequentially.
Reports suggest the intimations were sent to employees early this month and that the company’s onsite resources in Capco are very costly. In 2021, Wipro acquired Capco, a global management and technology consultancy to the banking and financial services industry, for $1.45 billion.
When asked about the proposed lay-offs, in a statement to TNIE, Wipro said, “We are committed to investing in our people, processes, and technology to drive better client and employee experiences and enhance productivity and agility across our organisation to meet fast-evolving client and market needs.”
The spokesperson added, “Aligning our business and talent to changing market environment is a critical part of our strategy as we look to build a resilient, agile, and high-performance organisation.” Capco reported a double-digit sequential growth in order bookings in Q3 of this fiscal and this was the highest in the last three quarters.
Wipro, seen many top-level executives exit in 2023, during Q3 earnings call, said the company is seeing consulting, especially Capco and Rizing, play a big role in the complex deals that they are winning in the market.