Cognizant a leading provider of consulting, technology and business process outsourcing services said it would cut senior-level jobs and incur as much as $35 million in severance costs during the rest of the year, even as it reported second-quarter revenue that missed analysts’ expectations.
According to economic times, Cognizant had already reduced headcount by 4,000 in 2017 and had previously offered nearly 400 senior executives a voluntary retirement scheme. Cognizant, Teaneck, Headquarter Company’s attrition was over 22% in the second quarter, a rate the company attributed to its stricter performance management moves and increasing global demand for tech talent.
“This one is really targeted towards the senior end of the pyramid. It is not voluntary, this is more involuntary. We are trying to clean up the higher end of the pyramid and allow our associates to grow,” Raj Mehta, president at Cognizant, told to media in an interview. But he did not specify the number of senior employees being targeted in this round of layoffs. And in addition, he also pointed that this was a global exercise and was not focused on a particular region and that the company’s headcount had grown in the quarter. Cognizant’s headcount rose by 7,500 in the second quarter to 2,68,900.
Cognizant is one of the world’s leading professional services companies, transforming clients’ business, operating and technology models for the digital era. The Industry-based, consultative approach helps clients envision, build and run more innovative and efficient businesses. Headquartered in the U.S., Cognizant is ranked 205 on the Fortune 500 and is consistently listed among the most admired companies in the world.