IT major Wipro’s net employee addition fell 69.6 per cent to 13,793 employees in just-concluded FY23 from 45,416 in FY22, amidst global slowdown woes affecting demand for the company and sector at large.
Wipro’s headcount has been on a decline for the last two quarters. In Q4, its headcount was down by 1,823 employees, and Q3 too had seen a decline of 435 employees. Currently, its total employee count stands at 2,56,921. Precedingly, the closing headcount in FY22 stood at 2,43,128 and at 1,97,712 in FY21.
Read: Wipro records muted Q4, net down 0.4%
Attrition too has been seeing a steady decline since the last three quarters. It has dipped from 23 per cent in Q2 to 21.23 per cent in Q3 to 19.2 per cent in Q4. Attrition rate peaked at 23.8 per cent in Q4FY22.
80% variable pay
Wipro at its Q4 earnings conference said that it will continue to hire for demand-driven skills amidst lowering attrition. However, it also sees headroom for a better level of utilisation. The management also indicated that its present employees will be getting 80 per cent variable pay overall, subject to performance, this quarter.
In terms of fresher hiring, the company added 22,000 freshers in FY23, meeting the target it had set. The company had revised its hiring target from 30,000 freshers to 22,000 as the demand environment changed with macroeconomic headwinds. While hiring targets have been met, woes of long onboarding delays still exist. The company had recently offered freshers jobs for a lower than initially offered compensation. It also fired some freshers after they failed internal assessments.
To be sure, the decline in yearly net addition is true for Wipro’s larger peers as well. Infosys and TCS too have seen a dip in yearly addition and the fourth quarter as well.
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Published on April 27, 2023
