Wipro bids adieu to 300 more 'Non-Performers'
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Wipro bids adieu to 300 more 'Non-Performers'

By Benny Thomas   |   Monday, 27 April 2009, 10:13 Hrs   |    49 Comments
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Wipro bids adieu to 300 more 'Non-Performers'
Bangalore: To power its growth during the present slowdown, Wipro, the third largest IT services company in India, has resorted to certain stringent measures. Last week, according to company sources, an indefinite number of employees have been laid off by the company. An employee, who has been laid off says, "Last week, around 300 employees were laid off on one single day."

Some had to wait for a long time to get back their documents, after being told about the company's decision. The employee illustrates, "I had to wait for more than eight hours to get back my documents, because of the long queue of employees."

Few days back, Wipro had outperformed its larger rivals Infosys and TCS both in terms of profit and revenue growth, in its Q4 results.

The move by the Bangalore-based company comes in the wake of an announcement made by Girish Paranjpe, Joint CEO of Wipro's IT business. Paranjpe had said, "For FY09, we probably have seen five to seven percent of our manpower employed with the IT business being released, as against two to three percent a year back."

According to Paranjpe, the performance criteria have become tougher now, because of the slowing economy. Last year, the company had announced, to put four to five percent of its workforce that is about 3,000 employees, under the performance scanner. Based on their performance some would be given counseling to help them improvise, while others would be asked to quit.

The spokesperson said, "Those who don't clear the 'tests', are the ones who are sent off." Pointing out to similar kinds of measures by other companies, she added, "This type of a move is taken by many companies these days, due to the economic downturn."

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Reader's comments(49)
1: i also got fired from wipro and thats nothing to do with performance... if you have bad relation with ur manager then you had it...

..they will force you to resign..if you say.. you will not resign then they will say .. we will fire you with bad remark about performance.. so there is no other way…

and if you resign then they will not give full compensation also …
i.e two months salary as per their own norms.. i got only one month salary..

but this so called non performer got job in 15 days - at peak recession time with 30% hike..

so how is the looser you know .. he he he
Posted by:vikas - 06 Sep, 2009
2: Which one is more worst HCL or wipro!
Posted by:anu - 30 Apr, 2009
Till the time you are getting salary from any of them its not bad to work with any of them.
Harita Replied to: anu - 01 May, 2009
4: Any ways Now Its a Trend for companies , For Cost Cutting....
Fresher are target at every where
Very Bad
Instead of It they should cut bloody managers Salary. then they will realize the impact of recession Impact..........
Posted by:tunkur - 29 Apr, 2009
Well Said, The managers in service industries are not more than mere human waste. All they do is harass the programmers to do all sort of non-productive stuff like time study (which will include how long they went for 1, and 2 bathrooms and tea, coffee etc), prepare totally waste PPTs and present them to client and loot them. A fresher who is paid just 30K-pm is billed @ 2Lacs-pm to the client. 20% goes as operating margin and remaining 50% goes to the id*iotic non-productive managers as salary. Lots of redundant posts. We need to bring in flat hirarchy like in product companies to make the service industry (who claims as total solution provider) really service oriented. Product companies are becoming more secure than seRvice providers, just for one reason that they have better operating margin. Service providers are no more than mere brokers or I would even equate them to pi*mps.
Someone Replied to: tunkur - 30 Apr, 2009
6: This company has a reputation of exploiting workers. It is still surprsing they are always in the news and getting new projects. It has actually given bad name to indian IT. It is only interested in money and neither in india, client or employees welfare. Most managers are inefficient and incapable thugs. When it closes down, world will have more peace and less headache.
Posted by:Joginder - 28 Apr, 2009
7: Worst company on Globe.Don't join this company at any cost
Posted by:Srinivasa Reddy - 28 Apr, 2009
Wipro and their related consulting houses cannot be trusted in Canada. They just lack integrity. Amir Premji and their goons laid off people Toronto in good times because client did not want to continue the project. To save cost they lied to the local contractors so they can save on paying the 2 weeks legal pay, by telling the employees they were not upto par.
JPN Replied to: Srinivasa Reddy - 28 Apr, 2009
9: It is an absolute truth that most of the engineers/ graduates absorbed by these IT firms were freshers.Irrespecitve of the institution from where they were coming, it is sure that they were unfit for taking-up any development jobs from the day one of their joining. As a usual practice, they were trained and tested by the company itself and subsequently were inducted in to the main stream. When the IT firm gets a new job, these workforce has to be trained again to fit in to the new platform. Now in the name of global recession, the firms are comfortably escaping the second level of training to the existing employees due to the reason that they can hire a fresher again for a much cheaper CTC.
However these Indian firms are in a dangerous game as the takers for IT related courses in most of the professional institutions are now on a drastic decline.Within no time, most of our companies have to pay a price for training non-IT work force to work on their projects costing a hefty fortune!
Let us hope that these IT firms would visualise the inevitability of future before getting them fixed.
Posted by:R D K Nair - 28 Apr, 2009
10: WIPRO HAS NOT APPLIED THOUGHT before asking the so called non-performers to quit. My first question in the event of market recovery, from where will they get skilled manpower and who would like to join this group. Secondly existing employees also will work with cat-on-the-wall attitude, looking only for right opportunity to jump........
Posted by:maaya - 28 Apr, 2009
wipro sucks.....
rdhgdehd Replied to: maaya - 28 Apr, 2009
12: Where were these managers when they recruited these so called non performers? In fact they must be sacked first and not these poor scape goats.
Posted by:Heric Samji - 28 Apr, 2009
All HR managers should be fired out before the Poor Skilled employee
EMPLOYEE Replied to: Heric Samji - 28 Apr, 2009
all are right
asadsasas Replied to: EMPLOYEE - 28 Apr, 2009
I agree.
Preethi Replied to: Heric Samji - 28 Apr, 2009
I too agree with this view
Muruganandam R Replied to: Preethi - 28 Apr, 2009
17: This is a mere reason to cite. If an Employer, under any given cirsumstance hires a resource that he thinks will not be able to perform, then it is completely his problem/error. I dont agree to any of these Indian or MNC IT companies who cite performance as criterio and fires employees.

It is the business which is not doing good and hence the lay off. Lets not question our own capability by saying that the last 5% of the employee strength is laid off. If a employee is not performing, the 1st person who should be laid off should be his or her manager. Finally all managers in the organization should be thrown out.
Posted by:Ajay - 28 Apr, 2009
You are absolutely Right....No need of managers at all.
They just take huge amount , simply flirting with girls and doing nothing
Employee Replied to: Ajay - 28 Apr, 2009
19: really it very hard to do job in It sector
Posted by:jyotu - 28 Apr, 2009
As per my concern, i think problem with manager they simply want save their neck coz they know how much stupid work they are doing in office. they never cut their expense, if u layoff one manager atleast we can save 5 person job. Coz "performance" is big word we can use it on any one.As per my Knowledge everyday 200-300 people is layoff in IT.
Our goverment is also not taking any step for this, atleast they have to make rule for Hiring/layoff. coz when layoff is happen it's happen only for 1 to 4 experince people , not for Manager, or any bady listen that Manager is LAYOFF. It simply wasting person carrier by These stupid managers.
Yash Replied to: jyotu - 28 Apr, 2009
21: i am sure that most of the companies will be facing the same troubles as wipro does. but i fail to understand why in this crunch time only do they get the chance to find out the low-performers? as an ex-wiproite, i have seen how things worked in the company. managers or so called loyalists to the company are given accolades and the engineers who actually work to get the bills going are exploited or due to non-compliance are booted out. if you are an arse-licker, you can be sure of getting the promotions and good pay hikes etc.

one can check out the so-called red/green taggers (wiproites will know what i am talking about) and see if they are technically anywhere near to a 15 year old kid. i know of the cases wherein company has asked ppl with very high experience (and good technical expertise) to go on half-pay, wherein for any other new projects they are employing these red/green taggers (who have no technical expertise) to work on the projects. and since they need help to even bring up an editor, they take help of these people who are on half-pay to do their dirty job.

god only knows when someone will wake up and clean the real mess out of the company instead of (trying to) weeding out innocent people from the company.

only god can help them
Posted by:im_xboss - 28 Apr, 2009
Classic comment. What u have said is all true.
"managers or .... the promotions and good pay hikes etc."- If u are good are arse licking and can stab your best buddy or friend it will work.
one can check out the so-called red/green taggers .....their dirty job.-Most of these guys have even forgotten abc's of computing and are only good at mail checking and thugging.
Nobody can help them. Only their final closure can help them. They are even worse case than Satyam. Satyam knows it is a IT company. This guys are not sure if they are IT, tubelight or Underword(D-Company)...LOL.
Amit Replied to: im_xboss - 28 Apr, 2009
Posted by:PRABIR DATTA - 28 Apr, 2009
24: Its true that nowadays jobcutting in order to have costcutting is on line up.Is this due to recession a factor everyone is saying or there are some other reasons hidden.
Infosys cut the jobs but is willing to acquire companies ,the fact of cost cutting is there then where the money comes for the acquisition.
Sorry for the employees!
Posted by:Anupam Rout - 27 Apr, 2009
Yes even companies like Infosys go for accuring other companies to survie. but Job cut is an excuse. Instead they can cut salalaris by 20-25%?. at lest now Educated people must undesrstand how much our Finace minster Chindambaram and Sonia has done damage to our country. will any body answer?
Jayasankar Replied to: Anupam Rout - 28 Apr, 2009
Very correct. If there is no money in the company, then how can u do acquisitions.
Jeev Replied to: Anupam Rout - 28 Apr, 2009
27: IT today has become more about BUSINESS than performance or technology. You must know the fact...whether u are a performer or a non-performer, if your position is weak at a given point in time ...in the company..you have a Good chance of being thrown out....This is cost cutting nowadays. Revenue is king...Nothing to do with performance.
Posted by:Dhananjay - 27 Apr, 2009
It is strange to learn that a reputed company all of a sudden realizes that it has 300- 500 Non Performers within itself. This puts a big question mark on the HR Team who do the hiring and the Project owners who look after Performance Analysis and Operations. A little un convincing yet real.
Posted by:Sheeba - 27 Apr, 2009
Very true. Company like Wipro, moving to such poor tactic of reducing the workforce is very sad. Wipro (Mr Premji) used to claim and put Ethics in the top priority list of their Values, but looking at such incidences makes it evident that its the call of the hour how they twist their Values. Sad... I myself being from the recruitment industry would like to put my view across, its not about recruiting bad people force but its just a matter that they want to get rid of the people sitting on their bench. They recruit a lot for bench. In normal scenarios, these giants (Wipro, Infy, TCS) were able to sustain this bench strength. But since its testing time they dont want to afford that. But is this the mistake of employee that he is on bench? Why at all at first place they thought of hiring for bench, if I am not wrong they have a huge bench strength of around 30-40% of their total work force. So at the first place please fire the team who had put in a vision of hiring for such a huge bench.
Rohit Singhania Replied to: Sheeba - 28 Apr, 2009
Its very bad to talk about HR'S here.you people are brought on the floor after the interviews.No companies hire without any interview if the interview is good then itself they are given the appointment letter.if the performance is low then its there mistake not the HR mistakes.
Sankalpa Replied to: Sheeba - 27 Apr, 2009
My comments were never to offend any personnel from HR or Operations end as I am myself working as an Operations Manager in a reputed IT MNC, I would like to correct you here that a company\'s non performance is never just because of one department and equally even the support funtions are liable for the same as per the latest corporate operations globally. The HR team needs to ensure regular performance anlaysis & necessary Training and Development Programs should be organized in order to avoid any lay off chances in future if at all it is stated due to non performance. 300 people together in one day cannot be declared as non performers. If you study my comments carefully 3- 4 times, you will get the real message. No offence intended.
Sheeba SK Replied to: Sankalpa - 28 Apr, 2009
This is indeed height of irresponsibility and lack of mature behaviour. First you are laying of people because the business is not keeping pace and then you are attaching a stigma to them that they are non performers. One did not expect this kind of immature behaviour from Wipro.
Purush Replied to: Sheeba - 27 Apr, 2009
Certainly, those who have been fired, must have been working under certain norms and standards which have been in place for years. Overnight, an organization finds that there are number of people who are "Non-Performers" and DO NOT deserve to be paid. Well It might happen and quite realistic. But it brings another debate that why the assessment of the performance was on a short notice? What all those were doing who are responsible to assess the standards? What about the standards themselves? Have they been dynamic with realistic approach towards the work ethics and the market demand-supply? What impact has the market slowdown in taking these decisions? Were they transparent enough to share the performance related info with the EX-EMPLOYEES? Were these ex-employees given any chance to prove/improve themselves? Well...the list goes on...
Unfortunately, No one is answerable and the one who could answer, is out of Question.

So...be it...face it....
Shubrat Mukherji Replied to: Purush - 27 Apr, 2009
34: really its very bad to take such kind of actions atleat with the facts that company is showing good results as compared to others in market. And not only Wirpo, but every company is touturing its manPower. There may be a number of other means to reduce cost rather than throwing out employees. Its a worst step companies are taking behind slowdown.
Posted by:Sunny - 27 Apr, 2009
In a service industry, labor is the biggest cost and the key cost driver. When the revenues are affected due to global economic downturn, not knowing when the economy is going to turn around, how can firms retain all employees?. Some restructuring would certainly be needed to streamline the workforce to meet the market demands in order to be profitable which means laying off low performers which is happening all over the world today. I think the Indian workforce has enjoyed hefty salaries and raises in the past few years and now is the time for the company to look back and see what is right. Now it is employers market...like it or not. You just have to be competitive....that's today's world.
Florida Gator Replied to: Sunny - 27 Apr, 2009
I agree that labor is the biggest cost in a service industry. But what I don\'t understand is didn\'t these companies ever know that? Why did it have to take all the employees in first and then try to streamline itself through a cost cutting exercise? My friend who works in Wipro told me a very silly predicament he was in two weeks back - HR had asked him and his PM to suggest a name, rather forcibly, so that he /she could be taken out of the employee list. They didn\'t have any, so they called the team and said that one of them would be out though they had no idea who that would be. And then he asked the HR team to select a person themselves. The point here is that there is no question of non-performers - cutting costs is more important. Regarding salaries, I agree that they are high enough in most cases, but nowhere near what a person with the same skills would earn in the western world, which is why these service companies grew in the first place. Let him who wants to cut costs sacrifice himself first...:))
Ajay Replied to: Florida Gator - 27 Apr, 2009
37: this kind of reaction is quite unexpected.. everyday they go to fire more and more employees. and the article points out that their results are pretty good compared to the others in the field.. still they are exploiting their workforce.. its really not expected of Mr.Premji.
Posted by:reema - 27 Apr, 2009
In such a slowdown, you can expect anything from anyone... Its not only Mr. Premji who took this kinda step.
Its true that the stamp of being non performer will definitely harm the employees' career. In order to keep company's reputation, they are blaming employees and I am pretty much sure that lot of them are not non performers at all.
Sush.. Replied to: reema - 27 Apr, 2009
ever worst company i found across the Globe.
Rahul Replied to: Sush.. - 27 Apr, 2009
Sometime back somebody told me...when you are performing you would hardly find anyone appreciating your efforts, but when you are not performing you may find all hedgehogs after your soul...I am sure this is what is happening..the scenario does explain two things that big cos do have a huge pool of non performers..secondly this raises a question on the training team, the sourcing team and the higher managment..I think if the system has so many non performers then the teams mentioned above are the biggest non performers...a non performer does not need a recession to get tagged..my question is why all these people were kept under the cover..for so long ?
rishi Replied to: Sush.. - 27 Apr, 2009
I read all the comments above, I guess some of you here are reacting adversely. I totally agree to what Florida has to say. Workforcer in a services company accounts to the major cost. As far as the projects are coming in & people are not on bench you typically would not see any issues. But in a typical scenario that all the IT companies are in today due to the economic slowdown it becomes imparative that companies take such drastic step. Services companies bank on the current 7 ongoing projects, I\'m sure these employees are from a group where the company would have seen a dip in the project wins. There is no point in having people on bench & being paid when the market is bad, they would as well utilize these funds in other areas. Also it is not necessary that they are bad performers, sometimes there are various factors that leads to the layoffs, it could be a combination of factors. There could be a certain budget that they are ecpected to operate & in such cases they follow what Ajay has explained above, forceful reduction of team size, if you are a team of 8 & the budget allows you to have just 5 with whatever permutation & combination then you have to let go of 3 people irrespective of their performance.
Roopa Replied to: rishi - 28 Apr, 2009
Firing has happened because the company has raised its standards so even after selection the HR are forced to fire the employees because of raised standards.
But it is extremely bad to put a tag of non performers on such employees
Nipun Jain Replied to: rishi - 27 Apr, 2009
This is the company that don't have any principles.I wonder how it became top 3 in India. Existing emps also won't work properly.They will look for the right oppurtunity and then jump.
Srinivasa Reddy Vajrala Replied to: Nipun Jain - 28 Apr, 2009
Agreed Guys! To change the view i believe, even the employees should think twice before they take up somethings as career , In India , now Engineering is bad , after 3 yrs, you will everybody crowding themselves for medicine or other new field coming up or might come up like regenerative , i dont say they should not , but only field , will creat this unnecessary extra , and MNCs will show all these people as their employees ( irrespective of capabilities) only to charge customer per head of Employee* 1hr pay , the more employees the more 1 hr pay can be low , but still MNC will get same price ,more labour means less time to produce only in respect to other company competition, quality and coordination, management will all be like stinking things.
Dontcompromise Replied to: Nipun Jain - 28 Apr, 2009
While hiring, IT companies don't promise job security. there is no point of blaming them. Its too obvious for them to reduce bench and non-performers at this time. i don't see wipro sent brilliant employees out. If you want to earn simply, look for some other job. IT is not a place for you
reality Replied to: Dontcompromise - 29 Apr, 2009
Wipro is the worst company to start ur career with.
Myself as an ex-wiproite have experienced it.My college friend who was a very good student and joined along with me, was asked to quit when he completed 15 months.Now after 9 months of pain,disgrace he got a job in a small company in bangalore.He worked in java and i can assure u guys that he is very very good in that competency.
What amit has said above is cent percent true.This company is good for all those arse lickers and buttering is absolutely necessary to survive.
I still regret my decision to sit for the Wipro campus selection.
Pranab Replied to: reality - 30 Apr, 2009
it is to be noted that many people who are laid off in wipro are not nonperformers actually, but who are on the bench. people who are adept in buttering managers get into the projects. normal people who dont have high level contacts are left in the lurch. after you got to bench, they clearly isolate you and see to it that you dont get into a project. only then you can be laid off as yor are not on a client's roll. they also demotivate you saying that you are not upto the mark and try to bring your confidence level down. that is the worst part of it. i know of a guy who got the best appraisal last year. now as the project got over and he is on the bench, what i said above is happening. very worst policies. things like this are happening in almost all it companies.
vamshi Replied to: Pranab - 30 Apr, 2009
48: Taking signatures on blank paper is a customary practice in wipro.Last year I was working on a project in US. Anuradha Raju the TED assistant manager forced me to come back to india.at the electronic city campus i was called by anuradha and gave me a blank paper and forced me to sign on a blank paper.she also explained that its the company's usual practice to forcibly take blank paper signatures. when i resisted she used abusive language.I would request all not to join wipro and destroy your career.
Posted by:manju - 03 Jun, 2010
49: Yes..Wipro is a crap place...no ethics..managers are incapable...no proper appraisals and band progression...ie., wipro always make profit by not giving proper salary...any1 who licks get proper salary...Infact you will learn more of excel and MS word...I dont know how this company gets project...Do companies check the company review before outsourcing or wipro does under table business... Totally its a messy company....
Posted by:present emplyee - 31 Oct, 2009