New Delhi, April 21: Amid intense competition in the market and tighter business environment, Wipro which is India’s third largest IT services exporter has shown doors to nearly 600 employees. The IT major has, however, termed the move as a part as part of its annual performance appraisal and said that it aims to align its workforce with business objectives.
Wipro’s move of weeding out its employees is probably because the company is grappling for the past few years with a low revenue growth. When asked, Wipro told India.com that the company undertakes this process on a regular basis. “Wipro undertakes a rigorous performance appraisal process on a regular basis to align its workforce with the business objectives, strategic priorities of the organisation, and requirements of our clients. This systematic and comprehensive performance evaluation process triggers a series of actions such as mentoring, retraining and upskilling. The performance appraisal may also lead to the separation of some employees from the company and these numbers vary from year to year”, the quote read.
Increasing automation, use of artificial intelligence and the recent issues in visa regulations have worsened the situation of employees in the country. As of now, about 600 employees have been asked to leave while there are speculations that the number could go as high as 2,000. The company is scheduled to report its fourth quarter and full-year numbers on April 25.
The company said that this systematic and comprehensive performance evaluation process triggers a series of actions such as mentoring, retraining and upskilling and hence it was necessary to take such a decision. At the end of third quarter of FY17, Wipro had a total headcount of 179,129.
Along with Wipro, other IT majors like Cognizant, Infosys and Capgemini are also facing challenges. Nasscom had earlier stated that the gentle deceleration continues as the industry focuses on productivity and automation. Earlier this month, Infosys came out with its results for the fourth and final quarter of the last financial year and reported a dip of 2.8 percent in its consolidated profit.
Infosys released about 8,000-9,000 employees in the last one year due of automation of lower-end jobs. The company’s human resources head Krishnamurthy Shankar had said the company has been releasing about 2,000 people every quarter and also training them in special courses that will help them in their new assignments.
Infosys rival, Tata Consultancy Services (TCS) in its yearly report for the financial year 2017 mentioned that the company net profit totalled $992 million which is a decline of 0.8% on a sequential basis and an increase of 5.8% from the year-ago period. The company’s revenue climbed by 8.7% to Rs 29,735 crores on a year-on-year basis and on the quarter-on-quarter basis it rose by 1.5%. In the previous quarter which ended on December 31, 2016, TCS had reported a net profit of Rs 6778 crore, up by 10.9%, as compared to as on December 31, 2015 quarter.
In a massive layoff exercise of its employees, Softbank-backed e-commerce marketplace Snapdeal showed the door to over 600 people in February. The company’s co-founders Kunal Bahl and Rohit Bansal have also announced that they will take a 100% salary cut, Financial Express reported.
Meanwhile, about 6,000 employees of the total workforce at Cognizant Technology Solutions, the US-based software company in March said that it will be reducing its employee count by as much as five per cent. At the end of December 2016 quarter, the company had a total of 2.60 lakh employees globally with over 75 per cent of them employed in India, TOI reported. Cognizant had laid off 1 percent of its total employees and in 2016 and had sacked 2 per cent of the employees.