After a difficult and unfinished turnaround over the last few years, Wipro has lagged behind Tata Consultancy Services, Infosys, and HCLTech. Late on Saturday, the company announced the departure of Thierry Delaporte, its first foreign chief executive. Thirty-year firm veteran Srini Pallia will assume the position at the once-top-three software bellwether, which was displaced a few years ago by HCL Technologies.
A New Wipro Head
The business stated that Delaporte, the first European CEO to head Wipro, which was founded six decades ago as a manufacturer of consumer goods and vegetable soaps, would like “to pursue passions outside the workplace.” Pallia, Wipro’s head of Americas, will take over on April 7 and serve a five-year term. According to the corporation, Delaporte will remain until the end of May to assist with the changeover.
According to ET, the abrupt declaration followed a meeting of Wipro’s top board members on Saturday behind closed doors.
Delaporte’s five-year tenure as CEO of the Bengaluru-based company, whose stock value has dropped by nearly a third since its January 2022 top, had yet to expire.
Although the decision’s timing “is a surprise, the market saw this coming,” according to experts. Senior leadership at Wipro has left in recent years, and the company has come under fire for consistently performing below expectations. On April 19, the business is scheduled to release its Q4 FY24 financial results.
The Chairman At Wipro Expresses Gratitude
The company’s chairman, Rishad Premji, thanked Thierry in a statement and said that the adjustments he made had improved the company’s future positioning. He declared, “We have improved our overall efficiency, strengthened our leadership, prioritized partnerships, and optimized our structure.” With Delaporte’s departure, the practice of giving the top position to a veteran has resumed.
“The CEO of this corporation stayed at the top despite the company’s poor performance. There have already been numerous senior-level departures from the organization. Additionally, outsiders in charge for the previous nearly ten years did not work out, according to an industry insider who wished to remain anonymous. “The company and its employees did not respond well to Thierry’s disruptions and excessive changes, particularly during a difficult period for the industry.”
Thierry Delaporte
Delaporte joined the business from the Capgemini group and became CEO of Wipro on July 6, 2020. He had worked with the French software giant Capgemini for 25 years, during which time he had held the positions of CEO and executive board member.
Senior executives had left Wipro under Delaporte, including chief financial officer Jatin Dalal, who left to work for competitor Cognizant. Wipro and another former coworker who joined Cognizant eventually launched a lawsuit against Dalal.
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