Cognizant likely to let go of more than 6000 employees this year
US-based IT giant Cognizant Technology Solutions is likely to lay off more than 6000 employees this year, after the conclusion of its performance appraisal process. While the actual exact number is not yet known, and there have been media reports suggesting that the number of layoffs may go as high as 10,000, Cognizant has stated to the media that it is a part of their annual performance reviews.
Up till December last year, Cognizant employed around 260,000 employees globally, with a majority of them (75 per cent) working in India. In 2016, they fired around two per cent of their employees, and approximately one per cent of their employees were sacked in 2015.
“As part of our workforce management strategy, we conduct regular performance reviews to ensure we have the right employee skill sets necessary to meet client needs and achieve our business goals. This process results in changes, including some employees transitioning out of the company. Any actions, as a result of this process, are performance-based and generally consistent with those we've made in previous years”, a spokesperson from Cognizant said.
In any given year, the numbers may bounce a percentage here and there, but resizing our employee base is a part of our standard practice. At the same time, we continue to enhance our capabilities and hire for roles across all our practice areas in the company”, he added.
The company is also focusing on extensive investments in the training and re-skilling of their team, and on significantly expanding its local workforces in the US and other markets around the globe, where it operates. “As agile development and the pervasive influence of technology increases, the value of colocation and a consultative approach also goes up,” Francisco D’Souza, Cognizant’s CEO was quoted as saying during an earnings call recently.