New Delhi: IT and consulting major Wipro has announced the closure of one of its key manufacturing facilities, leading to the displacement of several hundred employees.
After a protracted workers’ strike that started in December 2024, Wipro Enterprises has declared the permanent closure of one of its production facilities in Baddi, the industrial centre of Himachal Pradesh.
The business said that because of continuous disruptions and large losses, the unit had become commercially unsustainable, necessitating the painful choice to close the plant.
In a statement issued on the evening of 24 May, Wipro Enterprises said:
“At Wipro Enterprises, we have always prioritised building strong relationships within our communities and ensuring our business operates profitably, responsibly and with integrity. However, due to repeated disruptions and significant losses, including the ongoing strike since December 2024, we have made the difficult decision to close one of our factories in Baddi.”
Employee protests have been sparked by the closure, which is a significant change in the industrial environment of the area.
Operations at the facility have been significantly hampered by the strike, which started late last year. According to the Wipro Employees Union, employees had been showing up for work regularly since 2 December 2024, but on the morning of 24 May, they were abruptly refused admission when security guards told them that the factory was permanently shuttered.
Himachal Pradesh Chief Minister, the Minister of Labour and Employment and the labour commissioner have all received a written complaint from the union. They claimed that although they had accepted the majority of the company’s demands to settle the conflict, management insisted on the retraction of police charges against staff members, which they believed to be unjust and a roadblock to talks.
A Wipro Enterprises official, speaking on condition of anonymity, stated:
“Despite our efforts to keep the factory operational, this unit has become financially unsustainable. However, our other factory in Baddi continues to perform well and remains an important part of our business.”
The business emphasised that it is still dedicated to helping impacted workers and stakeholders get through this change while completely adhering to all regulatory requirements. Additionally, it reaffirmed its commitment to the local area’s development and progress.
The decision to close was made after the labour dispute had been dragging on for months without an agreeable resolution. Several hundred workers are impacted by this closure, though exact figures have not been made public. The business must help the displaced employees and give them the statutory compensation.
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