Automation on the Rise: Wipro's "Left-Shift" Strategy Triggers Job Cuts

As part of its strategic plan to improve margins, Wipro announces changes to its workforce, impacting hundreds of mid-level employees. The company emphasizes aligning its talent with the evolving market environment.

Wipro, one of India's prominent IT firms, is reportedly undertaking a significant workforce reduction, primarily targeting mid-level employees as part of its strategy to enhance profit margins. This move is set to affect hundreds of mid-level roles within the company. The decision stems from Wipro's ambition to improve its profit margins, given that it currently holds the lowest margins among the top four IT firms in India, lagging behind TCS, Infosys, and HCL Technologies, with its margin standing at 16% in the December quarter.


According to inside sources, the process of job cuts has already commenced, with a focus on mid-level executives, particularly those deemed "very expensive" at Capco, a consulting firm that Wipro acquired for $1.45 billion in 2021. Aparna Iyer, Wipro’s Chief Financial Officer, has been assigned the responsibility of driving margin improvement in the ongoing quarter.

Although Wipro's spokesperson did not officially confirm the job cuts, they acknowledged the company's commitment to aligning its business and talent with the evolving market environment. The strategic move is seen as part of Wipro's broader efforts to reshape its operations.

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Another source revealed that the job cuts are part of a broader strategy termed "Left-Shift," which involves a restructuring of roles. This includes delegating the work of a level 3 employee to a level 2 counterpart and that of a level 2 employee to a level 1 professional. The underlying idea is to automate the tasks of Level 1 employees, aligning with an industry-wide trend towards increased automation and efficiency.

As of 1:54 pm, Wipro's shares were trading at Rs 472.55 apiece on the NSE. The restructuring initiative reflects the company's proactive approach to adapt to changing market dynamics and ensure competitiveness in the rapidly evolving IT industry landscape.

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