Meta slashed Wipro's annual revenue by $25 million after an AI-led restructuring shut its digital marketing arm, the second major client loss in six months for India's fourth-largest IT firm.
Meta Platforms Inc has slashed at least a quarter of the IT work it outsources to Wipro Ltd, cutting annual revenue from the social media giant to about $75 million from roughly $100 million, two people familiar with the matter said.
The pullback follows an AI-led restructuring that shut Meta's digital marketing arm. Wipro managed IT support, customer services, and digital marketing work for Meta, one of the IT firm's 20 largest accounts. The Bengaluru-based company now expects about $75 million in annual revenue from Meta, down from $100 million in fiscal year 2026, the people said, speaking on condition of anonymity.
Concentrix Corp, Teleperformance SE, and Accenture Plc also lost parts of the digital marketing work as Meta closed the unit, the second person said.
At least 200 Wipro employees in its Gurugram office have been placed on the bench, awaiting redeployment. An email was sent earlier this month notifying them of the work termination, the second person said.
Meta's decision is part of a broader push to cut costs and rely less on outside vendors. “We are investing aggressively to meet our infrastructure needs and ensure we maximize our strategic flexibility over the coming years,” Chief Executive Mark Zuckerberg said on the company's April 29 earnings call. Meta said it will reduce reliance on third-party vendors for content enforcement and focus on internal systems, according to a March 19 release.
Wipro has now lost two major accounts in six months. In March, Estée Lauder shifted up to $100 million in annual work to Accenture, Mint reported. The company, which gives quarterly guidance, expects revenue to decline toward the lower end of its -1.5% to 0.5% range in the second quarter of fiscal 2027. Shares have fallen more than 31% since January.
Motilal Oswal Financial Services analysts Abhishek Pathak and Keval Bhagat said in a July 16 note they expect Wipro to lag peers, with fiscal 2027 likely to be another year of flat to slightly negative growth.
Meta, which ended last year with $201 billion in revenue, said it will phase out human review of graphic content and other repetitive tasks. “These systems will be able to take on work that's better-suited to technology,” the company said.
Wipro and Meta did not respond to emails sent July 25.
Wipro's Alpha Score sits at 46 (Mixed), reflecting the headwinds. Accenture scores 53 (Mixed). Meta's Alpha Score is 62 (Moderate).
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