Wipro 50% Salary Cut: What CFO Says About New Joinees And Their Salaries

Months after IT major Wipro cut salary offers of candidates by 50 per cent, its CFO Jatin Dalal said over 90 per cent of the freshers accepted the pay cut and joined the company at the lower compensation offer to fast-track the onboarding process.

In a recent interview with ET, Wipro CFO Jatin Dalal said the company had given new recruits the choice to accept the lower salary or not. “The next-gen associates were given both the options, and 92 per cent of campus hires chose to join at the lower offer.”

In February, Wipro reached out to candidates to whom it had earlier rolled out an offer of Rs 6.5 lakh per annum (LPA), and asked them if an offer of Rs 3.5 in annual compensation would be acceptable to them, instead. The move by Wipro was termed “unjust” and “unacceptable” by the employees’ union NITES.

In an email, the company had also assured an “early joining” for those who accepted the lower-salary option.

Wipro’s Hiring Plans for 2023

In a post-earnings press conference last week, Saurabh Govil, president and chief HR officer, said, “Demand environment is active and we will continue to hire basis demand. On inventory, we have to improve our utilisations. We have to look at the entire supply chain for hiring, going forward. As the business comes back and we see the growth, we will continue to hire people.”

He added that in the last quarter, Wipro added around 5,000 employees, mainly engineers.

On the decline in headcount in Q4 FY23, Thierry Delaporte, CEO and managing director of Wipro, said, “There is a danger of looking at headcount on a quarterly basis. Three-four quarters ago, we had a large increase in headcount and lowering our utilisations, impacting our margin… On a quarterly basis, you can’t see this impact. We will continue to hire. Also, attrition is going down, we need to take that also into account.”

Wipro’s voluntary attrition during the March 2023 quarter decreased 330 bps from the previous quarter, landing at 14.1 per cent on a quarterly annualised basis and at 19.2 per cent on a trailing twelve-month basis.

Last week, Wipro reported a net profit of Rs 3,074.5 crore for the March 2023 quarter, almost the same as the Rs 3,087.3 crore posted in the corresponding period last year. Its revenue from operations during January-March 2023, however, rose 11.17 per cent to Rs 23,190.3 crore, against Rs 20,860 crore a year ago. The net profit is attributable to equity holders of the company.

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