Wipro is reportedly set to reduce its mid-level workforce at onsite locations following a decline in consolidated net profit for the fourth consecutive quarter in Q3FY24, reaching Rs 2,694 crore. The IT services operating margin also experienced a sequential dip to 16.0%, down by 11 basis points.
Reports suggest that the decision to cut mid-level positions was communicated to employees earlier this month, focusing on the high costs associated with onsite resources from the acquired firm, Capco. Wipro acquired Capco, a global management and technology consultancy specializing in the banking and financial services sector, in 2021 for $1.45 billion.
In response to queries about the impending job cuts, Wipro stated, “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 organization to meet fast-evolving client and market needs.”
The company’s spokesperson emphasized the importance of aligning business and talent with the changing market environment as a critical aspect of Wipro’s strategy to build a resilient, agile, and high-performance organization.
Despite these adjustments, Capco, a subsidiary of Wipro, reported a double-digit sequential growth in order bookings during Q3, marking the highest in the last three quarters.
Wipro, which saw several top-level executive exits in 2023, highlighted the significant role played by consulting, especially Capco and Rizing, in securing complex deals during its Q3 earnings call. As the company adapts to changes in its organizational structure, optimizing resources and aligning with market demands remain at the forefront of Wipro’s strategy.
