Citing poor output, Wipro stops variable pay for senior, mid-level staff

IT major Wipro has decided to withhold variable pay for its mid and senior-level employees but extend the same to freshers and junior-level employees albeit after a 30 per cent deduction, citing operating margin pressure.

In emails to A and B band employees, the company has reportedly notified them that they would receive only 70 per cent of the variable or performance pay, and the 30 per cent pay cut will reflect by the end of August. Employees belonging to C band and senior positions, were, however, told that they wouldn’t receive any variable pay.

Also read: Lay-offs sweep through Silicon Valley as tech firms battle inflation, weak growth

The company said that the decision has been taken after employees failed to achieve targets set for the Q1. The email said that inefficiency in talent supply chains, project margins, and investments in talent technology and solutions pulled down the Q1 margins by 15 per cent.

The variable pay also includes sales incentives.

The silver lining, however, was that the company’s decision to not roll back the salary hike, with increments set to be effective from September 1.

Also read: Oracle begins lay-offs in Bay Area; job cuts also likely in India, Canada

The IT giant’s decision resonates with that of global peers including Google, Microsoft and Apple which have not only trimmed their headcount through layoffs, but have also frozen recruitment due to inflation, hike in interest rate and a looming recession.