Layoffs in IT Industry: There has been a reduction of about 64,000 employees in the country’s three largest information technology (IT) companies Tata Consultancy Services, Infosys and Wipro in the financial year 2023-24. The number of employees in these companies has decreased due to weak demand worldwide and reduction in technology spending by customers. While announcing its fourth quarter results on Friday, Wipro said that its employee strength has declined to 2,34,054 by March 2024, from 2,58,570 at the end of the same month a year earlier. In this way, during the financial year ending March 2024, the number of employees of the company decreased by 24,516.
Wipro Chief Human Resources Officer Saurabh Govil said the headcount reduction was primarily due to market and demand conditions as well as operational efficiency. India’s IT services industry is feeling pressure due to global macroeconomic uncertainties and geopolitical fluctuations.
Infosys and TCS also reduced employees
Infosys, the country’s second-largest IT services exporter, said its total employee strength at the end of March 2024 was 3,17,240, up from 3,43,234 in the same period last year. In this way the number of employees of the company decreased by 25,994. The number of employees in TCS, the country’s largest IT company, also declined by 13,249 and at the end of the last financial year it had a total of 601,546 employees.
How was Wipro’s result?
Wipro’s January-March quarter consolidated net profit declined 7.8 per cent year-on-year to Rs 2,834.6 crore. In the information given to the stock market, the company said that the operating income declined by 4.2 percent on annual basis to Rs 22,208.3 crore. Net profit (attributable to equity holders of the company) declined by 7.8 per cent to Rs 2,834.6 crore in the fourth quarter of FY 2023-24 from Rs 3,074.5 crore in the same quarter of the previous financial year. Wipro has kept its estimate for income from IT services at (-) 1.5 per cent to (+) 0.5 per cent for the April-June quarter. On its prospects for the first (April-June) quarter of financial year 2024-25, the company said, “We expect revenue from our IT services business segment to be between US $ 2,61.7 to 2,67 crore.” Net profit for the entire financial year 2023-24 declined by 2.6 percent to Rs 11,045.2 crore as compared to the previous financial year.
The company’s operating income stood at Rs 89,760.3 crore, which is about 0.8 percent less than the previous financial year. According to the information given to the stock exchange, the board of directors of the company has appointed Rishad A. as the executive chairman for a period of five years from July 31, 2024 to July 30, 2029. Premji’s reappointment was approved. The reappointment of Azim H. Premji as Non-Executive, Non-Independent Director for a period of five years from July 31, 2024 to July 30, 2029 has also been approved.
Latest Business News