IT Company Wipro holds back employees’ variable pay due to pressure on margins

IT Company Wipro
IT Company Wipro

IT company Wipro has held back variable pay of employees mainly thanks to pressure on margins, inefficiency in its talent supply chain and investment in technology, in line with sources.

IT Company Wipro

According to the sources, the corporate has informed employees in an email about the cut in variable pay.

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Two sources awake tothe event told PTI that managers to the C-suite Level of the corporatewon’t get any portion of variable pay, while employee grades between freshers to team leaders will get 70 per cent of the entire variable pay.

“The company within the email has attributed lower margins within thehalf-moonbecause of inefficiency in its talent supply chain, project margins and investment in talent, technology and solution during the quarter,” as per the sources.

IT Company Wipro on Wednesday reported a few 21 per cent year-on-year fall in its consolidated earnings to Rs 2,563.6 crore for the primary quarter ended June 2022.

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The profit for the amount (attributable to the equity holders of the company) stood at Rs 3,242.6 crore within the year-ago period.

The net profit was down 20.6 per cent on a year-on-year basis.

IT Company Wipro’s operating margin within the IT services segment decreased by 200 basis points to fifteen per cent quarter-on-quarter. The operating margin was 17.7 per cent within the January-March 2022 period and 18.8 per cent a year ago.

When contacted, Wipro said, “There isn’t any change to our earlier statement on raise, and hikes for our employees are effective from September 1, 2022. we’ve got also completed the primary cycle of quarterly progressions effective legal holiday, 2022. we’ve got no further comments on the quantum of variable pay”.

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Wipro had 2,58,574 employees as of June 30, 2022.

IT Company Wipro reported a slightly lower rate of 23.3 per cent within the April-June 2022 quarter (on a trailing twelve-month basis) from 23.8 per cent recorded within the previous quarter.