Thursday , February 21 2019

IT Major Company Cognizant Likely To Lay Off its 6,000 Employees

Analysts say that many IT roles will soon become redundant due to the impact of automation on lower-end jobs.


IT major Cognizant, which had significant operations in India, is likely to cut at least 6,000 jobs of the company, accordingly to most of the people are familiar with this matter. This would represent over 2 percent of its total workforce. Nasdaq-listed that Cognizant approximately had almost 2.6 lakh employees as of December 31, 2016. The layoffs have been part of the routine annual reviews to weed out non-performers, the company spokesmen told. Cognizant has also cut some variable pay for employees. “As a part of our workforce management strategy, we conduct regular performance reviews to ensure that we have the right employee skill sets necessary to meet the client needs and achieve our business goals. This process would results in changes, including some employees transitioning out of the company. as the result of this process that any actions are to be performance-based and generally consistent with those we have made in previous years,” a company spokesmen told.

The spokesmen as also clarified that “the numbers might bounce a percentage here or there, but this is part of our standard practice. At the same time, we are continuing to enhance our capabilities and hire for roles across all our practice areas in the company”.

Commenting on the variable pay, the spokesmen has also said, “Cognizant has a performance-based culture and our variable payout is a function of company and individual performance. In previous years where we had outperformed our goals, we paid considerably above the target payout. In 2016, we missed our original goals and our variable payout is reflective of that.”

Analysts said that many IT roles will soon be coming redundant due to the impact of automation on lower-end jobs. Many of Indian IT companies are struggling with lower growth amid and big changes in the technology landscape that is fastly shifting towards new digital services.

Cognizant has earlier announced a plan to return $3.4 billion to shareholders over the next two years through the shares, buybacks and dividend.

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