Wipro cancels variable pay for many employees, warned to take action for not achieving targets.
New Delhi: One of the largest IT companies in the nation, Wipro, has taken the decision to cancel variable pay for its mid-and senior-level employees while giving it to its newer and lower-level workforce after a 30% wage drop. The corporation explained in an email that operating margin pressure is to blame for the reduction in variable pay.
It is said that Wipro sent an email to its C-band and senior employees stating that they would not receive any variable payouts. The email, though, mentioned that employees in the A and B bands would receive 70 per cent of the target payout. And these employees will get their pay cut by the end of August.
The corporation claimed that teams’ failure to meet their allocated targets led to the decision to withhold variable pay. The corporation said that the incentives for members of the sales force had also been impacted for the same reason.
The IT company added that the wage increase would remain unchanged and take effect on September 1 in the same email.
Tech companies have been passing through a tough phase. Big tech firms like Google and Apple are mulling layoffs. While Google has warned its employees to work with full energy. Apple has already shown the doors to 100 employees. Several other noted tech companies, like Netflix and Microsoft, have asked their hundreds of employees to leave their jobs as a result of the economic slowdown.
