The Teaneck, New Jersey-headquartered company is searching for ways to reduce its heavy senior leadership positions and bring about changes in the top-heavy pyramid. However, that doesn’t translate into mass job cuts. Also, the salaries for campus graduates and recruits will increase by almost 20 percent, according to Karen McLoughlin, Chief Financial Officer at Cognizant.
“Our pyramid is top-heavy. This does not mean there will be layoffs of thousands of people but there are quick actions that we can take,” McLoughlin said at a conference in New York, according to media reports.
Attracting and retaining skilled talent continues to be the focus for Cognizant. Even though the rise in the headcount number was higher than the revenue growth in the last couple of quarters for the company.
In order to become appealing to the campus graduates and ensure that Cognizant attracts skilled talent from top universities, the company plans to increase freshers’ salaries--especially for those with niche skills.
Earlier this month, the company also introduced a ‘voluntary separation’ program starting from the director level and above. This program would cover about 300 top executives across Cognizant offices in different parts of the world and would include directors, vice-presidents and assistant vice-presidents.
Apart from the restructuring of the workforce and increasing salaries to recruit and retain niche talent, diversification of the portfolio has become one of the major targets for the company.