Reportedly Global IT major cognizant technology Solutions (CTS) will be removing 10,000 to 12,000 mid-to-senior level associates from their current roles. Meanwhile this was announced by Brian Humphries, CEO of cognizant in its earning call with analysts on Thursday. Furthermore of the 10,000-12,000 that will be removed, the company aims to re-skill around 5,000 associates and redeploy them and this will result in around 5,000-7,000 employees eventually losing their jobs in the coming quarters.
Further Brian said, is part of the company’s cost reduction plan. He said “This gross reduction is expected to lead to net reduction of 5,000-7,000 roles as we aim to reskill 5000 associates, thereby lessening the impact on our associates and allowing us to reduce lateral hiring,” in the earnings call and hence this holds significance as a majority of Cognizant’s employees are based in India. In september, Brian announced that CTS has over two lakh employees in India.
Moreover as part of its content moderation business, cognizant worked with clients such as social media giant Facebook. Perhaps the company has been under fire for the impact the high-pressure job of content moderation for facebook was having on the mental health of Cognizant’s employees and for the third quarter ended september, cognizant posted a net profit of $497 million and its revenues were up 4.5% to $4.25 billion. The IT major also raised its revenue growth guidance for the full year to 4.6-4.9% in constant currency, up from the previous guidance of 3.9-4.9%.
