Photo Credit: India TODAY
In a major blow to the industrial workforce of Himachal Pradesh, Wipro Enterprises has announced the permanent closure of its Baddi manufacturing unit, leading to the layoff of 80 employees. The decision, confirmed by the company on May 24, 2025, marks a significant turning point in the region’s industrial landscape.
The closure follows a prolonged workers’ strike that began in December 2024, which severely impacted operations and led to mounting financial losses for the company. According to Wipro, repeated efforts to resolve the dispute through negotiations failed. One major point of contention was the company’s refusal to withdraw police cases filed against several striking workers.
“We were left with no choice. The unit had become economically unviable due to the ongoing disruption,” a company spokesperson said.
Wipro cited operational challenges, unrest, and unsustainable costs as the primary reasons behind the closure decision.
On the morning of the announcement, workers who arrived at the factory gate were met by security guards and informed that the unit was permanently closed. Shocked and angered, employees staged protests and approached the Himachal Pradesh Labour Department and the Chief Minister’s office, demanding justice and intervention.
“We were kept in the dark. There was no prior notice,” said one laid-off worker, adding that the livelihoods of dozens of families are now in jeopardy.
Wipro Enterprises has stated that it will compensate all employees as per statutory norms. The company also reiterated its commitment to supporting affected stakeholders during the transition.
Importantly, another Wipro manufacturing unit in Baddi remains operational and continues to function normally, the company confirmed.
The Baddi industrial area is a prominent manufacturing hub in North India. The Wipro Baddi plant shutdown is likely to have a ripple effect on local suppliers, ancillary businesses, and the state’s employment statistics.
This incident also raises larger concerns about labour-management relations in India’s manufacturing sector, particularly in Tier-2 and Tier-3 industrial zones.
This isn’t the first time Indian companies have resorted to shutting down units due to labour unrest. Similar closures and large-scale layoffs have occurred in recent years across various sectors, highlighting the urgent need for reform in industrial dispute resolution and employee welfare practices.
