Wipro will be putting a stop to the hiring process for this financial year. It will instead focus on utilising the current staff effectively amidst the pandemic.
In the last financial year, Wipro had added about 12,000 freshers to its workforce and had planned to add about the same number in this fiscal too. However, that plan is reportedly being put on hold. Even the offers made to candidates on campus have been deferred. The Company intends to honour those offers, of course, but not in the immediate future.
There has been a net reduction in hiring primarily because Wipro is focussing on making the maximum use of the resources available at present and going slow on hiring. This has increased its utilisation rates from 70.2 per cent to 73.4 per cent in March.
Among the other measures taken to handle the situation, the Company has put aside promotions and increments for now. It has also cut down on budgets and is already witnessing reduction in IT expenditure by clients. It is expecting payments to be delayed and current contracts to be redone, which is likely to have a significant impact on not just working capital but also margins. The only way the Company can control the situation is by slowing down in terms of hiring, delaying increments and also saving on subcontracting costs.