Cognizant is planning to let go of a few hundred employees, as it plans another round of layoffs as part of its strategy to slash costs- Economic Times report.
“Under new CEO Brian Humphries, Cognizant is undergoing a widespread restructuring aimed at boosting growth and lowering costs. The company is looking at boosting the variable pay component of salaries, a move that will reduce costs, as part of the restructuring”
According to the report, this was part of the appraisal process, which was “getting stricter”. If you were a marginal performer or have not been allocated (a project), then Company would look at beginning a separation process. The report also reveals the number of layoffs would be in a few hundred, and employees who have more than eight years of experience would be targeted.
Cognizant is exercising “tighter control” over expenses through a number of measures, including a slower pace of hiring and reduced travel expenses, as the company looks to re-invest in talent and digital solutions to drive growth. The company told news agencies that it took “targeted actions” at senior-level executives in the second quarter, in a move that is expected to result in $65 million of annualized savings.
Earlier this year, Cognizant slashed its revenue growth forecast and said its headcount addition had outstripped revenue growth, leading to narrowing margins. The firm had 288,200 staff as of June 30, a 7% increase from 268,900 a year earlier. It had about 281,600 employees at the end of 2018, with 194,700, or 69%, in India, according to Cognizant’s annual report for 2018.