From the reports of Times of India, the Cognizant Technology Solutions are likely to lay off at least 6,000 employees on this year. The US-based IT company which has the Primary workforce in India is liable to cut down the number of the employee by 2.3%.
The Cognizant spokesperson stated that the move is a company’s regular appraisal cycle and the underperformer peoples are likely to be fired. He also said that “As part of our workforce management strategy, we conduct the regular performance review to ensure we have the right employee skill sets necessary to meet the client needs and achieve our business goals. This process will lead to changes, including some employees may remove out of the company.”
Media reports also said nearly 10,000 employees could lose their jobs. The Layoff is liable to be more on this year than the typical annual exercise that weeds out the lower one percentage of the workforce for non-performance as determined by the annual appraisal process that ends in the month of March.
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The Lay off move comes at the time when the automation of entry-level positions is making 1000 of jobs redundant in the IT sector. On last year, the layoff is of 1-2%, and before two years ago it was 1%. According to the report, Cognizant has 2,60,200 employees globally as of December 31, where nearly 1,88,000 or 72% of employees are based in India.
Cognizant, the Information Technology giant, which competes with firms like TCS and Infosys saw its challenging time as the revenue growing 8.6 percent, after years of double-digit growth. On 2016, the company reported that, two percent drop in net profit to the $416 million for the fourth quarter that ended on December 31, 2016, against the $423 million for the same quarter last year.
Cognizant Technology Solutions are planning to invest in training and re-skilling and substantially expanding their local workforces in the US and other local markets around the world. During the earnings call, Franciso D’Souza, company’s chief said: “As agile development and the pervasive influence of technology increases, the value of co-location and a consultative approach also goes up.” He also stated that they would leverage their scale to prove costs in the year 2017-18 through the cost-optimisation of traditional offerings like infrastructure, applications and process services.
With the layoff of employees from Cognizant Technology Solutions, the unemployment in India might go up from 17.7 million to 17.8 million in 2017 and 18 million a year later.