Cognizant hints at more job cuts while outgoing execs may take $25 million
- Cognizant’s quarterly revenue for the first quarter of 2019 stood at $4.11 billion.
- The company had also seen the departure of its CEO and Vice Chairman Francisco D'Souza.
- Its ‘realignment program’ could now result in job cuts.
It also slashed its full year growth target. The quarterly revenue for the first quarter of 2019 stood at $4.11 billion compared to $3.91 billion in the year-ago quarter. The net income was $441 million compared to $520 million in the year-ago quarter.
According to reports, the company’s ‘realignment program’ could result in job cuts. “As part of our realignment program, management is currently evaluating various strategies, including additional employee separation programs. The timing, nature and magnitude of these initiatives are not finalized at this time,” said the company.
Earlier this year, Cognizant saw the departure of its CEO and Vice Chairman Francisco D'Souza amid management’s decision to bring in an outsider to lead the company. Meanwhile, the company’s former president Rajeev Mehta was with the company until May 1, 2019.
Reporting the costs incurred because of his departure, the company’s official records state, “During the three months ended March 31, 2019, we incurred $2 million in costs associated with the CEO transition and the departure of our President. We expect to incur approximately $23 million in additional compensation and benefits costs associated with the CEO transition and the departure of our President during the second quarter of 2019.”
In 2017, over 400 senior Cognizant employees had accepted the company’s voluntary separation package, which had helped the company save $60 million.
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