According to reports, Wipro is in the process of terminating a large number of mid-level staff in order to increase its profit margins. 

Aiming to increase its profit margins, the global IT Wipro has outlined huge middle-level employee layoffs moving towards hundreds of onsite employees every week. This carefully based decision brings the continued theme for the tech industry which involves businesses cutting down on employees in an attempt to realize cost reduction and increased return.

Wipro's Margin Challenges

One of the challenges that Wipro faces in keeping its profit margins consistent is about ‘settingtable with the industry peers. Reportedly, in the December quarter of 2019, the profit margin for search engine optimization (SEO) Guru was lowered to just around 16%, which would be a far cry from what its well-respected peers and rivals like Tata Consultancy Services(TCS), Infosys or HCL Technologies usually make earnings on.
After the purchase of Capco by Wipro for $1.45 billion led by CEO Thierry Delaporte, the company has decided to move forward with this sizing of its staff. On the other hand, in terms of consulting the industry was damaged under Ibec (2016) post-COVID, and now during the economic downturn lower customer expenditure has forced cost cutting.

 

The Implementation of Left-Shift‎ Strategy

It is a part of Wipro’s ‘Left-Shift, which has designed itself as an effort to improve the use and delivery through blueprints layoffs. This approach involves reallocating work to different personnel levels emphasizing efficiency and automation. Through re-assignment of tasks, Wipro tried to increase productivity as well as face the challenge that lives in a changing market demand, which connects personnel better.
Profit margins of the firm are to be increased during this quarter and hence Wipro has given Aparna Iyer, The layoffs, mainly targeting mid-level executives also reflect the will of Wipro to keep a low-level structure to make profits even in difficult economic situations.

Answer and Prospects

To the questions, a Wipro spokesperson has reiterated that initially, there is none of us are aware or can predict how markets respond; however, it keeps its focus on adapting strategies and fixing accessibility commitments alongside staff investment in finance resources. Wipro continues to be committed to improving client and employee experiences even in the face of criticism regarding its loss of senior talent and its effect on employee morale.
In light of a changing economic environment, Wipro's strategic need to maintain competitive profit margins is reflected in its decision to lay off hundreds of people.