Wipro, one of the largest IT services companies in India, recently announced that it will lay off 120 employees in the United States amid the restructuring of its workforce to meet changing business needs. This step seems to be a part of the company’s strategy to optimize costs and restructure its delivery model in the US.
With the ongoing pandemic and the resulting economic slowdown worldwide, companies are restructuring their workforce to save costs and streamline their operations. Wipro, for instance, has been reorienting its service offerings to keep pace with the changing demands of its clients. This restructuring has led to layoffs, which the company said was a “hard, but necessary decision.”
Wipro is not alone in this situation; several other companies in the US and Europe have too adopted a similar strategy. These include Cognizant, Accenture, TCS, and Infosys, which have also been reeling under the effects of the pandemic-induced economic slowdown. The companies have announced cost-optimization measures that involve job cuts and furloughs.
Wipro’s restructuring will affect employees working in the Automotive Engineering Services (AES) vertical. The company has informed the US Department of Labor that the layoff will take effect from September 4, 2021. The employees who will lose their job will be offered a severance package, including two months’ salary and benefits, and outplacement services to help them find new jobs.
The company has stated that it will continue to invest in the US, which is a crucial market for it. Wipro is expanding its local workforce in the US, hiring engineers, and other skilled workers to support clients’ growing demand for digital services. Furthermore, the company is also focusing on developing local talent in the US as part of its localization strategy.
Wipro’s decision to layoff employees during the pandemic might seem harsh. However, the global pandemic has presented several challenges for the IT sector, such as the transition to remote working and the changing business environment, which have resulted in reduced demand for specific services. The companies have thus had to rethink their operating models, take stock of their workforce requirements and optimize costs.
In conclusion, Wipro’s decision to layoff 120 employees in the US is a reflection of the current economic climate and its impact on the IT sector. Despite the layoffs, the company remains committed to its clients in the US and to expanding its local workforce. It is essential to remember that these decisions are not easy for companies to make, and they are taken only after careful evaluation and consideration of the business environment. With the continued uncertainty surrounding the pandemic, the IT sector is likely to remain under pressure, and companies may continue to make necessary cost-optimization decisions, such as layoffs, to survive and thrive in the long term.