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.
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