Employees Continue To Exit Wipro, Over 5,000 People Left In Q2FY24; Attrition Drops Sharply

Employees are continuously existing the Azim Premji-backed Wipro for the fourth consecutive quarter now, a trend that has escalated across the IT sector both domestically and internationally since early 2022s amid challenging economic conditions. In Q2FY24, Wipro let go of more than 5,000 employees, while the attrition rate dipped sharply to 15.5% in the quarter.

As per the financial results, Wipro's total headcount stood at 244,707 employees, which is a net reduction of 5,051 people from the headcount of 2,49,758 employees as of the June 2023 quarter.

At the same time, the tech player's attrition rate declined steeply to 15.5% by the end of Q2FY24, compared to 17.3% in Q1FY24. That being said, Wipro's voluntary attrition rate is at a 9-quarter low. The attrition rate was at a high of 22.9% in Q2FY23.

Notably, earlier in May, Wipro merged its Indian business from the state-run enterprises (ISRE) sector to its broader IT Services segment. This has led to a change in its headcount. Before the integration of ISRE business, the headcount of Wipro stood at 2,56,921 in Q4FY23. However, after the merging of the ISRE business, Wipro's headcount data was also restricted with a total number of employees recorded as 258,570 in Q4FY23.

Before merging the ISRE business, Wipro's headcount declined by 1,823 people in Q4FY23 compared to the headcount of 258,570 employees in Q3FY23. Before this, Wipro's headcount was at 262,109 employees in Q2FY23, also lower from 262,626 people in Q1FY23 when it added 577 people compared to the previous quarter.

Currently, IT companies are struggling with tepid growth due to challenging macro conditions, which has weakened IT spending from clients.

Wipro's peers TCS, HCL Tech, and Infosys have recorded a significant reduction in headcount during the September 2023 quarter.

In Q2FY24, Wipro posted consolidated net profit of Rs 2,646.3 crore in the quarter ending September 30, 2023, period, registering a decline of 7.8% from a profit of Rs 2,870.1 crore in the preceeding quarter. The PAT was flat compared to profit of Rs 2,659 crore in Q2 of FY23.

While gross revenue stood at Rs 22,520 crore in the quarter, a decrease of 0.1% YoY. As for IT services revenue, the segment garnered $2,713.3 million, a decrease of 2.3% QoQ. Total bookings was at $3.8 billion, up by 6% YoY and large deal bookings was at $1.3 billion, up by 79.0% YoY.