Microsoft to cut 6,000 jobs in fresh round of lay offs amid restructuring
Microsoft said on Wednesday it planned to reduce organisational layers with fewer managers and streamline its products, procedures and roles.The Seattle Times first reported on the layoffs earlier on Wednesday. Separately, Bloomberg News reported Microsoft's Barcelona-based King division, which makes the Candy Crush video game, is cutting 10 per cent of its staff, or about 200 jobs.Big Tech peers, which are investing heavily in artificial intelligence, have also announced job cuts.Facebook parent Meta earlier this year said it would trim about 5 per cent of its "lowest performers", while Alphabet's Google has also laid off hundreds of employees in the past year.advertisementAmazon has also cut jobs across its business segments, most recently in its books division. The company had earlier laid off employees in its devices and services unit, and communications staff.Economic uncertainties and rising costs have triggered layoffs across sectors in Corporate America, as companies rush to streamline operations and hedge against further cost pressures.- Ends
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Mint
26 minutes ago
- Mint
IT's pay puzzle: Wipro, TechM median salaries drop despite rise in headcount
Median remuneration to employees at Wipro Ltd and Tech Mahindra Ltd fell simultaneously for the first time in eight years in FY25, despite both companies expanding their workforces. Analysts said that this indicates that the two IT service providers likely added more freshers as well as hired replacements at lower salaries to boost profitability. In FY25, Wipro and Tech Mahindra reported a decline of 0.6% and 6.52% in annual median salary, respectively, according to their annual reports. At Wipro, median salary totalled ₹9.78 lakh (around $11,000), whereas median salary at Tech Mahindra worked out to ₹18.3 lakh for males and ₹15.4 lakh for females. Median salary is the mid-point of a set of salaries arranged in ascending order, where half the salaries are higher and half lower. In contrast, the country's two largest IT outsourcers—Tata Consultancy Services Ltd and Infosys Ltd—increased their median salary to employees by 6.3% and 9.6%, respectively. Median salary at the country's third-largest software services provider HCL Technologies Ltd is not yet known as the company has yet to release its annual report for FY25. Wipro and Tech Mahindra—India's fourth and fifth-largest IT firms—last reported such a simultaneous decline in median salary in FY17. Individually, Pune-headquartered Tech Mahindra has seen its median remuneration decline six times in the past 10 years, whereas it is the third such instance for the Bengaluru-based Wipro. Median remuneration to employees at Wipro does not include whole-time directors. TCS and Infosys reported such a decline only once in the past decade, in FY21 and FY15, respectively. HCLTech is the only company among the country's top five software services firms to have never seen its median salary decline. Emails sent to Wipro and Tech Mahindra remained unanswered till press time. The fall in the median remuneration comes at a time when profitability of the country's largest IT outsourcers has been under pressure. These companies are exploring various ways to improve operating margins and one such way is to hire junior employees at lower costs. Lower median remuneration at Wipro and Tech Mahindra could imply that the companies added more freshers and/or hired candidates at lower salaries to replace talent at mid-management and senior levels, which led to a decline in median salaries, analysts said. 'Firms such as Wipro and TechM are following the lead of TCS by moving work to tier-4 locations and increasingly hiring from universities which are less prestigious. This is significantly lowering the cost of these employees and bringing down the average wages paid," said Peter Bendor-Samuel, founder of Everest Group, a Dallas-based tech research firm. He added that this was done to boost operating margins. 'The relentless focus on reducing cost is having its desired effect of allowing these firms to post higher margins," said Bendor-Samuel. TCS, Infosys and HCLTech reported operating margins of 24.3%, 21.1% and 18.3%, respectively, in FY25, respectively. TCS's margin declined by 30 basis points, while Infosys and HCLTech's margins grew by 40 basis points and 10 basis points, respectively. Wipro and Tech Mahindra improved their profitability the most last year. Wipro increased its operating margins by 100 basis points to 17.1%, whereas Tech Mahindra's profitability jumped 360 basis points to 9.7%. Hiring more employees can increase the median, or the mid-level salary. If a company adds headcount, the median salary is expected to increase because there are more employees in the company. Still, if the median salary goes down, it means that the number of employees earning salaries below the median amount has increased and that middle and senior-level employees have decreased. Both Wipro and Tech Mahindra added headcount last year by 732 and 3,276 employees, respectively. Wipro ended with 233,346 employees whereas Tech Mahindra ended with 148,731 employees. TCS added 6,433 employees to end with 607,979 people, whereas Infosys added headcount by 6,338 to 323,578 people. In contrast, HCLTech reduced staff by 4,061 to end with 223,420 people, becoming the only IT outsourcer of the top five to cut headcount last fiscal. A second analyst said churn at the top may also have contributed to the decline in median salaries at both Wipro and Tech Mahindra. 'The reduction in median remuneration to employees is a reflection of the fact that the companies may have hired more freshers and/or let go of lateral and senior staff," said a Mumbai-based analyst on the condition of anonymity. Both Wipro and Tech Mahindra have seen churn at the top. Mint reported on 26 June that Tech Mahindra saw at least 20 senior management movements at leadership levels, including service lines and geography heads, since March 2024. Even at Wipro, despite chief executive officer Srinivas Pallia's emphasis for promoting internal candidates to top roles, the company has seen significant leadership churn. Over the past two years, at least 30 senior executives at the level of senior vice-president and above have exited, driven either by better opportunities, or limited growth prospects under Pallia's predecessor Thierry Delaporte, who stepped down last year after four years at the helm. However, a third expert attributed the falling median salary to experienced employees accepting roles at lower salaries in a challenging job market. 'Because growth has been flat for these companies, they are refocusing on investing in their experienced staff while also lowering the overall wage bill. During this challenging market, there are also many experienced workers available, and it's easier to hire experienced talent at lower wage levels," said Phil Fersht, chief executive of HFS Research. He added that this trend is not a one-off and that IT outsourcers are looking at hiring employees at lower costs. 'There is a lot of flux in global services at the moment, with many providers laying off staff, which is making the talent pool of experienced people larger and bringing down wage demands," said Fersht. Wipro and Tech Mahindra were the only two companies in the top five Indian IT firms to see a second successive full-year revenue decline in FY25. Wipro and Tech Mahindra reported revenue declines of 2.72% and 0.21% to $10.5 billion and $6.3 billion, respectively, in FY25.
Time of India
33 minutes ago
- Time of India
Intel CEO Lip Bu Tan may be planning this 'big change' in company's chip manufacturing business
Intel CEO Lip-Bu Tan is reportedly planning a 'big change' to the company's chip manufacturing business to attract major customers. This potential shift deviates from his predecessor's plans and could involve substantial investment. According to a report by the news agency Reuters, two sources familiar with the matter revealed that this new strategy for Intel's foundry business would involve offering outside customers a newer generation of technology. Analysts also reportedly believe that this next-generation chipmaking process would position Intel more competitively against Taiwan Semiconductor Manufacturing Co (TSMC) in securing large clients like Apple or Nvidia. Why Intel's new CEO may not be 'happy' with chipmaking process promoted by ex-chief After taking over as the company's new CEO in March, Tan has been reassessing the company's investment in its 18A chip manufacturing process, which was promoted by former CEO Pat Gelsinger . The Reuters report cited sources to claim that Tan has expressed concerns that 18A is not attracting enough external clients and may result in a major financial write-off if Intel stops marketing it to new customers. Intel has already spent billions on developing 18A and its variant, 18A-P. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo While Intel continues using 18A for in-house chips and select commitments to companies like Amazon and Microsoft , Tan may be shifting focus to the 14A process, the Reuters report claims. Intel believes 14A could offer a stronger competitive position against Taiwan-based rival TSMC, whose N2 and N3 technologies are already in production or close to it, the report adds. As per the Reuters report, Tan is expected to present strategic options to Intel's board, potentially by this month. However, a final decision may not come until later in the year due to the high stakes involved. Meanwhile, Intel continues restructuring under Tan's leadership, with steps including new engineering hires and streamlined management. Last year, Intel posted a net loss of $18.8 billion, which was its first unprofitable year since 1986, as it works to regain ground lost in past tech transitions. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
34 minutes ago
- Time of India
Green shoots to greenbacks: Actis eyes BluPine sale
Actis, a UK-based firm, might sell its stake in BluPine Energy. The deal could value the renewable energy platform at $1.3-1.4 billion. Actis has approached potential buyers for exploratory talks. This move aims to de-risk its position and accelerate returns. Other renewable energy platforms in India are also seeking buyers. Globally, the momentum behind renewables has softened recently. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: UK-headquartered private equity firm Actis is weighing a sale of up to 100% of its stake in Gurgaon-based renewable energy platform BluPine Energy in a deal that could value the company at $1.3-1.4 billion (about ₹11,138-12,000 crore), according to people familiar with the has approached multiple potential buyers, including strategic investors, for exploratory talks through its advisor on exiting the company it had launched four years ago with an $800 million commitment, the people the sale goes through, it could mark Actis' third major renewable energy exit in India, following the sale of Sprng Energy to Shell for $1.55 billion in 2022 and of Ostro Energy to ReNew Power in is pursuing a full or partial exit from the company while much of its portfolio remains under construction, in order to de-risk its position and accelerate returns to investors, according to people with knowledge of the matter.'The valuation will rise after commissioning, but even an earlier exit at a slightly lower value allows Actis to return capital faster, demonstrate performance and support its next fundraising,' said the person cited industry executive said that as a financial, not strategic, investor, Actis is focused on faster capital rotation if it ensures strong of February, BluPine Energy had a 3 GW portfolio, including 1.1 GW of operational assets and 1.9 GW under construction, according to a March report by Care Ratings . The company aims to build an overall renewable capacity of 4 and BluPine Energy declined to had infused $468 million into BluPine Energy by February, out of its total $800 million commitment from its Actis Energy 5 fund, according to Care Energy is led by Neerav Nanavaty, former India CEO of French utility Engie, who has built the platform from the ground up—initially through acquisitions, later moving to greenfield development. Solar projects dominate the company's 3 GW portfolio, accounting for 76% of capacity, while wind and hybrid assets make up 13% and 12%, respectively. The average tariff for its operational portfolio is Rs 3.91 per unit, per Care increasing number of renewable energy platforms in India are looking for buyers, even as investor appetite has cooled compared to the previous financial year, when some large deals were closed. Gentari, the renewable energy arm of Malaysian state oil company Petronas, is seeking to sell up to 50% of its India business. It has a portfolio of 4 GW of operating assets and 4 GW under construction assets. Edelweiss Infrastructure Yield Plus is planning to sell its entire 74% stake in the 1.2 GW solar platform it co-owns with momentum behind renewables has softened. Fossil fuel companies are under less pressure to decarbonise, especially following the return of pro-fossil fuel President Donald Trump to the White House earlier this year.
