7,000 Cognizant jobs are on the line as the tech major rejigs workforce
Cognizantis planning to layoff staff. As many as 7,000 mid level and senior level jobs are on the line.
- Another 6,000 jobs may also be affected, globally as the IT major plans to close down its content moderation services.
- Cognizant posted a quarterly revenue of $4.25 billion, 4.2% up from last year.
According to an ET report, as many as 7,000 mid and senior level jobs are on the line — accounting for 2% of its workforce. As many as 5,000 employees will be redeployed into other job roles.
“To improve cost structure to partially fund these investments and advance Cognizant’s growth agenda, it has made the decision to remove approximately 10,000-12,000 mid-to-senior level associates worldwide from their current roles in coming quarters. The gross reduction is expected to lead to a net reduction of approximately 5,000 to 7,000 roles as the company aims to reskill and redeploy approximately 5,000 of the total associates impacted,” Karen McLoughlin, CFO, Cognizant said.
Given the job cuts, the company expects to save up to $500 million in the next two years
Another 6,000 jobs may also be affected globally as the IT major plans to close down its content moderation services — including social media platforms like
“Exiting this area will impact an additional approximately 6,000 roles worldwide, though the company intends to work with its partners to explore ways to transition the roles to alternative vendors, thereby reducing the impact to associates,” ET reported citing company executives.
The closure of content moderation services will also impact its communications, media and technology verticals.
“Cognizant is aligning with clients’ digital imperatives, and doubling down on four key areas — Data, Digital Engineering, Cloud and Internet of Things (IoT),” the company noted.
The company posted a 4.2% increase in its third quarterly revenue at $4.25 billion, as compared to the same period last year. It also witnessed a $20 million jump in its net income at $497 million, compared to $477 million last year.
At the same time, it is trying to boost revenues by tightening travel budgets, and increasing variable pay.
In 2018, Cognizant also introduced a voluntary separation programme for senior executives. Under this, it offered 12-month salary and stock benefits depending on the employee’s tenure in the organisation.
H-1B visa rejection rates rise sharply — 30% of Cognizant, Capgemini, Accenture, Wipro and Infosys applications denied
Cognizant, Accenture and Caspex accused of 'white collar slavery' in a new lawsuit
Cognizant will hire 500 sales staff and looks to poach ‘disillusioned’ IBM employees
Popular on BI
- Elon Musk's brain-chip startup shares video it says shows a monkey telepathically 'typing'
- BHEL among 5 bidders for Rs 58,000 cr deal to manufacture, maintain 200 Vande Bharat trains
- Herschel Walker's son says Trump called his father for months demanding that he run, while 'everyone with a brain' begged him not to
- 1,330 recognised startups from gaming and related sectors as on Nov 30: Som Parkash
- Sula Vineyards to open IPO next week from Dec 12-14; GMP already at ₹70 per share
- India to add 9 million gig jobs by 2025 says Indeed report
- From Brahmastra to KGF: The most searched movies on Google in 2022 in India
- Adjusted for inflation, policy rate still remains accommodative, says RBI Governor