Having a technologically challenged workforce can be a great setback in the digital era. Realizing the need to have more and more tech-savvy people in the senior leadership, the IT major, Cognizant has laid off around 200 of its senior employees at the director level or above during the year.
A severance payout of three-four months has been paid to all the employees, costing Cognizant $35 Mn.
While last year, the company had laid off 400 employees under a voluntary retirement scheme, the layoffs of this year were not optional. Most of the exits are said to have happened in the month of August.
Cognizant wrote, “We continue to enhance our capabilities and hire for roles across all our practice areas in the company.”
The statement further mentioned that as part of an ongoing workforce management strategy, Cognizant aims to ensure that it has the right employee skill sets necessary to meet client needs and achieve business goals.
As per a report, some of the senior employees, who were asked to leave, said that they had been asked to sign a ‘mutual release agreement’ with the company and they also had to acknowledge that no legal action would be pressed against the company, its directors or its officers.
The Cognizant layoffs are a reminder to the working professionals and business leaders who still lag behind when it comes to being tech-friendly. The world is changing and it’s wise to change with it.
Today, technology stands at the heart of every business function, with digital advancements and innovations disrupting and changing the way things are done at a rate faster than ever. A recent survey by Accenture, Future Workforce Study, found that while 69 percent of the senior executives agreed that adopting intelligent technologies will be critical to their organization’s ability to differentiate in the market. However, only about 20% of Indian business leaders believe their workforce has the skills to work with AI, thus, highlighting a skill gap.
But what is wiser: Replacing digitally challenged employees with the tech-savvy ones? Or Investing in the existing workforce and taking them on a transformational journey with the company?
How are you preparing for the tech revolution? Has it cost you your job yet?
Let us know your thoughts in the comment section below.