Meta Cuts Wipro IT Contract by $25 Million

Meta Platforms Inc. reduced its outsourced IT spending with Wipro Ltd by approximately $25 million, lowering annual revenue from the account to $75 million. The decision follows Meta's shutdown of its digital marketing arm as part of a broader cost-reduction drive and an AI-led overhaul designed to strengthen internal capabilities and decrease reliance on third-party vendors.

Wipro is not the only firm affected; Concentrix Corporation, Teleperformance SE, and Accenture Plc also lost portions of the business. The cuts resulted in at least 200 Wipro employees at the company's Gurugram office being placed on the bench for redeployment.

This loss represents the second major client hit for Wipro in six months, following a $100 million revenue drop from Estée Lauder. The development complicates turnaround efforts led by CEO Srini Pallia as the IT services industry faces systemic challenges from AI automation.