Wipro, the Indian IT services company, was all over the headlines in February when it announced a 50 per cent reduction in salary packages for freshers. The company had initially offered Rs 6.5 lakh per year to the new recruits but cited a "changing macro environment" as the reason for the decision to cut salaries. The move was criticized, with many questioning the ethical implications of such a decision.
However, according to Wipro's Chief Financial Officer, Jatin Dalal, 92 per cent of the freshers opted to join the company at the lower compensation offer in order to fast-track the onboarding process.
In an interview with the Economic Times, Dalal explained that the company had given new recruits the choice to accept the lower salary or not. "We will continue to onboard next-gen associates based on our business needs throughout the year," he added.
The CFO emphasized that Wipro's decision to reduce the compensation packages for freshers was taken with "full fairness and transparency." He stated that new recruits were given both options and that the majority
Wipro stated in an email to freshers, as earlier reported by Business Today, that the lower compensation offer created an immediate opportunity for candidates to start their careers and acquire new skills.
"As we work to honour all outstanding offers made, this current offer creates an immediate opportunity for candidates to start their careers, build their expertise and acquire new skills - both through the interesting and innovative work that we do, as well as our extensive learning and development programs," the email read.
While the decision to reduce salaries for freshers may have been controversial, Wipro claims that it was necessary due to changing business needs. The company maintains that the majority of new recruits accepted the lower salary offer and that it will continue to onboard new associates throughout the year based on business needs.
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