Wipro Ltd. is said to have sent termination letters to an as yet unknown number of its ‘expensive mid-level executives’ working onsite at Capco, the London-based consulting firm the IT major acquired for $1.45 billion in 2021, according to two people with knowledge of the development.
The move is part of a company-wide “trimming” to improve Wipro’s profit margins, said the people, who spoke on condition of anonymity. “Many employees” at Capco had been on the “bench” for long now, the people added, making a reference to the industry practice of keeping staff on standby in anticipation of future work.
“Aligning our business and talent to the changing market environment is a critical part of our strategy as we look to build a resilient, agile, and high-performance organisation,” a Wipro spokesperson said, without elaborating, in reply to an e-mailed query from The Hindu seeking comment.
Wipro acquired Capco, a business and technology management consultancy operating primarily in the financial services and energy sectors, in March 2021 to spur quick growth. Capco employs more than 5,000 consultants across the Americas, Europe, and Asia Pacific.