When our Advanced communication Analysis (ACA) subject faculty, Prof. Y. N. Kaushal asked us to prepare a persuasive speech and blog as a part of the subject assignment, one of my experience during my working days in Wipro Technologies did crop up. I was just made to remind those happy days working at Wipro Development centre in Mexico. It was really a wonderful experience in working with fellow Mexicans and it was a great experience to be a part of the team, which the first team to work in Mexico center. And then due to global economic downturn, the management decided to close the development center. As the development center head, I had to convince and encourage the ever hardworking, bright employees to understand and realize the situation and made them understand that company was with them and we as the top management of the company would be with them at that worst time. And truly speaking that was the most difficult situation to handle. So I felt like this would be a good persuasive blog for my ACA assignment.
In response to the realities of a deteriorating economy, the top management was taking important steps to realign Wipro’s business. Wipro’s third quarter revenue of $6.03 billion, which was an increase of just 10 percent compared with the third quarter of last year which is at least 15 percent below our earlier expectations. And also our growth rate was less than our competitors.
So, after having a conference meeting with Business Unit Head, Group head and other top management, the decision was taken to close the Mexico development center. And I was told to inform this news to the employees. Next morning when I reached offices news, I was quite upset and not able to face the employees. I couldn’t think how to pass this news to my employees, who were no way responsible for this business slow down. That was really challenging for me. But anyhow I withstood that pressure and called a meeting with all the employees and narrated the situation. Which was as below:The fact that we’re growing at all during the worst recession reflected our strong business fundamentals and is a testament to hard work by all the employees. Our products provide great value to our customers. Our financial position is solid. We have made long-term investments that continue to pay off. It was also true that in one year Mexico center had contributed approximately 20% of revenue generated by mobile and consumer electronics division. This was due to all the employees’ hard work and dedication. By opening this center we’re able to be the no. 1 service provider to USA clients. I appreciate all of your agility, which helped in achieving the goal.
But it was also clear that we’re not immune to the effects of the macroeconomic environment. Our response to this environment must combine a commitment to long-term investments in innovation with prompt action to reduce our costs. We must make adjustments to ensure that our investments are tightly aligned with current and future revenue opportunities. The current environment required us to increase our efficiency. As part of the process of adjustments, top management would eliminate up to 3,000 positions in R&D, marketing, sales, finance, HR, and IT over the next 12 months. And this was not only in our company, but other companies in the industry were also on the same boat. Our leaders all had specific goals to manage costs prudently and thoughtfully. They had the flexibility to adjust the size of their teams so they are appropriately matched to revenue potential, to add headcount where they need to increase investments in order to ensure future success, and to drive efficiency.
As we all knew that the mobile and consumer electronics division’s the worst hit business unit in the current recession time, unfortunately we’re losing clients from USA, which were the major revenue generator for us. Hence the company had decided to close the Mexico center. And approximately 50% of positions (48) would be retained and posted in offices located in India with full salary and out of remaining 50% positions, 20% positions would be retained with 40% reduced salary and remaining 30% positions would be terminated.
The decision to eliminate jobs was a very difficult one. We as a team were the foundation of Mexico development center. Also you all were the foundation of everything we had achieved. We place the highest value on the commitment and hard work that you had dedicated to build this Development center. But the company believed these job eliminations were crucial to the ability to adjust the company’s cost structure so that it had the resources to drive future profitable growth.
After narrating the situation, I thanked all my dear employees for their continued commitment and hard work. Also wished them bright future and asked to have their association in future. At last, I signed off, wishing them all the best and good luck.I was bit satisfied by seeing some relieved faces after my discussion with them. I was bit relieved, thinking that I was able to put company’s message in a proper manner and also was satisfied in able to convince all my employees.
It is really a memorable incident in my life. And it is so due to none other than those employees, whom I consider my dear friends.
Note: This is an assignment for Advanced Communication and Analysis Course at FORE School of Management, New Delhi. This assignment is done by Hiralal Senapati, Roll# 191087, and Section – FMG19B
