Tech Mahindra restructures after weak Q2 results
PUNE, INDIA — IT services firm Tech Mahindra is restructuring after disappointing Q2 results amid slowing demand. Starting in January 2024, the company will consolidate into 6 core units and appoint new regional leaders.
Tech Mahindra CEO Mohit Joshi explained that the restructuring consolidates the Americas business into 3 units, combines Europe telecom and non-telecom under one leader, and consolidates Asia Pacific and Japan under a single Australia-based head. India becomes a separate business unit.
The reorganization aims for more resilience and innovation in Tech Mahindra’s service offerings. But near-term headwinds persist in key markets like telecom.
Joshi said the changes aim to “streamline, focus, drive resilience, service line innovation, and margin improvement.” They also shift focus from geography-based delivery to vertical-wise delivery.
The weak Q2 results and restructuring reflect slowing demand, especially in Tech Mahindra’s 40% CME (communications, media, and entertainment) business. Joshi looks to diversify revenue into healthcare, financial services, and retail.
In Q2, Tech Mahindra’s net profit plunged 61.6% to Rs 494 crore (US$59 million) as revenue declined 2% to Rs 12,864 crore (US$1.55 billion). Operating margin also dropped significantly to 4.7%.
Related news
- ibex wins Philippines’ Best Employer for the 2nd consecutive year · 2 Nov
- GreenBanana SEO celebrates 15th year under CEO Kevin Roy · 1 Nov
- Majorel lays off 200 employees following Meta contract loss · 1 Nov
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
