Information technology services firm Wipro on January 31 said it is "aligning" its talent to the "changing market environment", while responding to media reports on layoffs at mid-level onsite roles in the company to improve margins.
"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 organization," Wipro said in a statement issued to Moneycontrol.
According to a report by ET Prime, quoting a source, Wipro has sent intimations earlier this month to hundreds of mid-level executives onsite as these employees are "very expensive resources onsite in Capco."
Capco is a consulting company which Wipro acquired in 2021.
The report further said that Wipro Chief Financial Officer Aparna Iyer has been tasked with showing better margins in the January-March quarter.
A second source quoted in the report said the job cuts was part of a ‘Left- Shift’ strategy, with the work of a level 1 employee being automated. While the work of a level 3 employee is shifted to a level 2 employee, who is given appropriate tools and a level 1 employee does the level 2 work, the report said quoting a source.
The Bengaluru-based company has the lowest operating margins amongst the four largest IT companies in India. In the December quarter, Wipro's revenue fell 12 percent year-on-year. This was the fourth consecutive quarter wherein the company reported a fall in profit.
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