The Delhi High Court recently ordered Wipro to pay Rs 2 lakh in damages to a former employee. The case involved defamatory statements made in the employee’s relieving letter. The court also told the company to issue a new letter without those remarks.
The employee had worked as a principal consultant from March 2018 to June 2020. After his exit, Wipro issued a letter that described his behavior as “malicious” and claimed he caused an “irreparable breakdown” in the relationship between him and the company.
Upset by the language used, the former employee approached the court. He asked for the removal of the statements and for a clean termination letter to be issued.
Court Supports Employee’s Request
The Delhi High Court agreed that the remarks in the original letter harmed the former employee’s reputation.
It said the statements could damage his future job chances and cause emotional stress. The court ruled that keeping such remarks on official record was unfair and unnecessary.
In its order, the court stated that issuing a new letter without the statements would not change the fact that the employee had been let go. It simply meant the company had to remove content that attacked the employee’s character.
Company Told to Issue Fresh Letter
The court directed Wipro to delete all negative statements from the earlier letter and replace it with a new one.
This new document must not include anything that reflects poorly on the former employee’s character. The Rs 2 lakh compensation was granted as general damages.
Wipro Reports Weak Performance in June Quarter
Around the same time, Wipro shared its financial performance for the June quarter. The company reported a 2.3% drop in revenue in constant currency terms.
This decline was within its earlier forecast of –3.5% to –1.5%. Wipro blamed the dip on reduced client spending due to economic concerns.
Company Focuses on Cost and AI Projects
CEO Srini Pallia said clients are avoiding non-essential spending and instead focusing on projects that offer quick results.
He mentioned that customers are concentrating on cost-cutting and streamlining vendor partnerships. They are also pushing forward with projects involving data and AI.
Margins See Mixed Results
Wipro’s operating margin slipped slightly to 17.3% this quarter, down from 17.5% in the previous one. However, this was still an improvement compared to last year’s same quarter, which saw a margin of 16.5%.
CFO Aparna Iyer said flat employee use and currency movements were partly offset by cost savings.
Strong Contract Wins Despite Revenue Dip
Despite the fall in revenue, Wipro landed several major deals. The total value of these deals was $5 billion, up over 50% from the year before.
Large deals made up $2.7 billion of this figure, more than twice last year’s total. These projects are expected to continue for the next 6 to 8 quarters.
The company saw slight growth in the Americas, helped by digital project spending. Business in the APMEA region remained steady.
However, in Europe, revenue remained weak due to rising costs. Pallia said demand in the banking and finance sector held steady.
Hiring Slows, Outlook Remains Modest
Wipro expects little to no growth in the next quarter, forecasting revenue to stay flat or fall by up to 1%.
During the June quarter, the company’s workforce shrank slightly, ending with 233,232 employees—down by 114 from the previous quarter.
The company’s cautious outlook reflects the broader trend in the industry, where firms are watching their budgets and delaying major tech upgrades.
While Wipro is dealing with pressure on both revenue and hiring, it is leaning on its deal pipeline and internal cost control to stay on track.
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
