Cognizant will cut about 7000 jobs in next few quarters as the company has started to restructure the organization. Cognizant will remove a number of mid-to-senior employees, and redeploy about 5000 of those impacted.
According to media reports, the gross reduction is expected to lead to a net reduction of approximately 5,000 to 7,000 roles which amounts to about 2 percent of the company’s total population.
The company is also cutting 6,000 more jobs due to the recent investigations into the working conditions at sites dedicated to Facebook. Cognizant had hired thousands of moderators around the world to remove hate speech, terrorism, and other inappropriate content from platforms including Facebook, Google, and Twitter. The content moderators (hired by Cognizant)at the site serving Facebook, described being diagnosed with post-traumatic stress syndrome after being subjected to a daily onslaught of graphic and disturbing images. Others said they had come to embrace fringe viewpoints after seeing videos about conspiracy theories on a regular basis. Multiple employees reported fearing for their safety after being threatened by coworkers.
As a part of recent developments, company is exiting its content moderation business for clients such as social media giant Facebook. The company has come in a significant scrutiny for the working environment of the moderators and the impact of the work on their mental health. The step will further impact 6,000 roles worldwide.
The company has claimed in media that people who lose their jobs would be offered “retention bonuses, severance packages, and the opportunity to participate in various reskilling programs.” It’s unclear whether they will be offered other jobs within Cognizant.
The exit will also impact revenue in the company’s Communications, Media and Technology segment, with the ramp-down in work expected to be over the next one to two years.