Wipro Closes Himachal Pradesh Unit, Leading to Significant Layoffs
Layoffs Following Unit Closure
Wipro has announced significant layoffs after permanently shutting down one of its manufacturing facilities located in Baddi, Himachal Pradesh. This decision, made public on May 24, 2025, comes in the wake of prolonged labor unrest and a strike initiated by workers in December 2024. Currently, 80 employees are affected by this closure.
Workers expressed their surprise at the company's decision, stating they were not informed prior to the shutdown. Reports indicate that employees arriving for their shifts were halted at the factory gates by security personnel and informed of the closure, leaving many in disbelief, especially those who had only recently started working in December.
Factors Behind the Closure
Reasons For The Closure
Multiple sources indicate that the closure of Wipro's manufacturing unit in Himachal Pradesh is attributed to operational challenges and significant financial losses. The company has also pointed to economic unsustainability as a key factor in its decision.
Despite ongoing discussions between the company and the workers' union, no resolution was reached. Reports suggest that a major sticking point was Wipro's refusal to withdraw police complaints against certain workers, which hindered the possibility of a final agreement.
Compensation for Affected Workers
Will The Workers Be Compensated?
Wipro has committed to providing all legally mandated compensation and support to the employees impacted by the layoffs. However, the abrupt nature of these layoffs has led to widespread protests in the region. The workers' union has lodged a formal complaint with both the Chief Minister of Himachal Pradesh and the Labour Department.
The closure of the Baddi unit, which played a crucial role in Wipro's manufacturing operations, represents a significant setback for local workers and the industrial growth of the area. It is important to note that another Wipro facility in Baddi remains operational.