The tech giant Cognizant has decided to cut 6,000 jobs from their organization. This represents a total of 2.3% of the entire working members of the company. This decision was made as the company struggles with the growth in IT environment which is shifting towards digital services. Also, the pay of the employees is expected to be adversely affected from 2016-17.
Every year the bottom 1% are laid off for nonperformance by the end of March, this year the layoff is more likely to be more than the general annual exercise. The company is also looking at cutting down the lower end IT jobs and also roles that have become redundant due to automation.
2015-16 had layoffs of 1-2% and a year before that it was 1%. Globally, the organization has 2,60,200 employees as of December 31, 2016. Out of this, 72% or 1,88,000 are based in India. It is yet unclear as to how many jobs or what roles would be made redundant.
A Cognizant spokesperson speaking to a news daily said, “As part of our workforce management strategy, we conduct regular performance reviews to ensure we have the right employee skill sets necessary to meet client needs and achieve our business goals. This process results in changes, including some employees transitioning out of the company.”
The growth of the last year for this company was in single digits at 8.6% and was the most challenging year for the company. The company has been having double digit growth in the industry and was leading growth, but this year things changed and led to the company’s decision of layoff.
