IT Sector layoffs: Fresher graduates first to face the axe, salary of CEOs surged nearly 10 times in last 10 years, shows report
Wipro CEO Delaporte was the highest paid in Indian IT sector with a pay package of Rs 79.8 crore, while the package of a fresh graduate at Wipro was around Rs 3.2 lakhs.
The salary of chief executive officers (CEOs) of major IT companies spiked by nearly 10 times between 2012 and 2022, but the annual package of freshers in these companies hardly increased by 45 per cent within this period. A recent viral tweet revealed this gigantic pay disparity in the IT sector.
The tweet came on the backdrop of the news of major IT companies firing a bulk of their employees. More than 1,600 tech employees are being laid off per day on average in 2023 globally, with some of the major layoffs happening in India, as per the data from layoffs tracking site Layoffs.fyi.
IT Companies CEO Salaries went up by 835% while Fresher’s salaries grew by just 45% in the last 10 Years
Infosys CEO Pay
2012 - ₹80 Lakh
2022 - ₹79.75 Crore
Infosys Freshers CTC
2012 - ₹2.75 Lakh
2022 - ₹3.6 Lakh
Indian IT companies are a Blessing in Disguise
— Ravisutanjani (@Ravisutanjani) January 17, 2023
As per media reports, in 2022, Wipro CEO Delaporte was the highest paid in Indian IT sector with a pay package of Rs 79.8 crore, while the package of a fresh graduate at Wipro was around Rs 3.2 lakhs. The situation is no different for other leading tech companies in India like Tata Consultancy Services, Tech Mahindra, and HCL.
Fresh graduates, including those from IIT and NIT with less than 1 year in the company, were the latest to get laid off in the latest round of job cuts in Amazon India, recent media reports showed. While on one hand there is a constant fear among fresher graduates of losing their job, and hence, they agree to work on lesser pay; at the same time, the leap in the salary of honchos has also been doing the rounds.
After the tweet came, Amit Bhasin, co-founder of GoMechanic, spoke openly about the flaws of company owners to address the financial disparity as he pointed out how the company needs to let go of approximately 70 percent of its workforce.
“Our passion to survive the intrinsic challenges of this sector, and manage capital, took the better of us and we made errors in judgment as we followed growth at all costs, including in regard to financial reporting, which we deeply regret. We take full responsibility for this current situation and unanimously have decided to restructure the business while we look for capital solutions," he said in a LinkedIn post.
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