Meta cuts Wipro outsourcing by $25 million to $75 million annually
Meta just cut $25 million a year from its outsourcing deal with Wipro, after shutting down its digital marketing arm to focus more on AI.
This means Wipro now gets $75 million annually from Meta, down from $100 million.
It's the second big hit for Wipro in six months: Wipro lost up to $100 million in annual revenue when Estee Lauder shifted its share of work to Accenture back in March.
Wipro staff in Gurugram await reassignment
At least 200 Wipro employees working on Meta projects in Gurugram are now waiting to be reassigned. Other vendors like Concentrix and Teleperformance also lost out as Meta brings more work in-house.
Mark Zuckerberg said in April that Meta wants stronger internal tech and AI, so it's relying less on outside help.
For Wipro, this adds to tough times: revenues are expected to drop this quarter, and shares have fallen more than 31% since January.
It's all part of a bigger shift toward automation across India's massive IT sector.