1.2 lakh Cognizant employees resigned, CEO under siege

17
1.2 lakh Cognizant employees resigned, CEO under siege
Currently, the company's headcount stands at 341,000 employees globally. Over 1.2 Lakh employees resigned from the company as attrition was reported at 36% for the second quarter ending on June 30, 2022.

Information technology services and consulting company, Cognizant Technology Solutions Corp. has announced historic high attrition of 36 percent (combining Voluntary & Involuntary Attrition) in the second quarter, ending on June 30, 2022.

Currently, the company’s headcount stands at 341,000 employees globally. Almost 1.2 Lakh employees resigned from the company in the last 1 year.

Quarter Total HeadcountAttritionEmployees Left
Q2FY223,41,00036%30,690
Q1FY223,40,40031%26,381
Q4FY213,30,60035%28,927
Q3FY213,18,40037%29,452

Total Employees left in the last one year- 1,15,450 close to 1.2 Lakh.

Attrition Includes – Total Quarterly Voluntarily and Involuntarily Attrition.

Commenting on the attrition and number of employees left in the last one year the company told to SightsIn Plus, “Cognizant’s employment is at the highest in its history – 341,000 employees strong. Year-on-year, the company has nearly 40,000 more employees than at this time last year, and continues to grow  larger each quarter, as Cognizant has become a talent magnet across the IT industry.”

“Cognizant is the most transparent and inclusive in its attrition disclosures in the industry. Our methodology to calculate attrition rates includes voluntary and involuntary attrition, the entire company IT + BPO, including trainees and corporate associates. This methodology differs from other industry peers.” The company added.

The company further told, “Cognizant invests not just in total rewards, but also in employees’ skilling and career advancement. We have always been known for our investment in our people, and in the last year we have built on this legacy with accelerated skilling and enhancements to our promotion framework.”

“In 2021 alone, Cognizant trained over 150,000 associates in digital skills such as Cloud, AI, ML, IoT, analytics, and automation. We’ve rewarded our current Cognizant associates with 33,000 internal job moves and with 90% of the global team receiving a raise in the past 12 months.” The company further added.

Wedbush Securities’ Note

According to various media reports, US-based wealth management and investment banking services firm Wedbush Securities has advised the board of Cognizant to observe the company’s underperformance, and possibly even consider replacing the incumbent boss, Brian Humphries.

Wedbush Securities said in a report, “there is an inevitable, imminent urgency of addressing these points” as Cognizant’s current “technique of avoiding/not competing” for large deals is “unprecedented” since every IT services firm is competing for multi-year multi-million work from Fortune 500 clients.

Moshe Katri, Managing Director, Equity Research, Wedbush Securities mentioned, “We maintain our Outperform rating on CTSH despite a host of ongoing execution challenges, leading to the company’s significant relative underperformance (growth rates) vis-a-vis its peers.

“During a time which some would categorize as the best IT spending environment since Y2K, as we believe, that ultimately The Company’s Board is bound to act upon these issues, leading to leadership changes at the helm”, Moshe Katri wrote in a note dated July 29.

This is an uncommon rebuke from the analyst who has lined the data expertise providers sector for over 20 years.

Moshe Katri has mentioned a few points, “At its current form, Cognizant is probably one of the most under-appreciated platforms in the sector. During the past few years, and under the leadership of Brian Humphries (since April 2019).”

“We witnessed a number of troubling trends, including:

  • The loss of important senior personnel.
  • An inability to recruit senior personnel formerly with technology/growth companies.
  • The decision to stay away from large deals/transactions.
  • An inability to appropriately staff its bench, depressing revenue growth and likely resulting in competitive losses.
  • Significant, relative underperformance in growth rates vis-a-vis Tier I offshore and global peers (INFY, TCS, Accenture). 3 years into the incoming CEO’s so-called restructuring plan, we believe The Board will address these ongoing execution/strategy challenges.”

According to an Economic Times report, Cognizant told ET that the assertions described in Wedbush’s report were “speculations at best.”

The company further said, “The report neglected how Cognizant was executing on its strategy, and several large deals – Zurich Insurance in Germany, National Insurance Company in India, and AXA, UK & Ireland – it had announced recently.”

Cognizant further added, “We have an industry-leading book-to-bill ratio of 1.2x, reinforcing our revenue growth expectations. We have expanded margins by 30 basis points year-over-year, and 50 bps sequential improvement, at a time when many of our peers are experiencing margin decline. Additionally, we returned more than $1 billion to shareholders through the first half of the year,”

IT services firm Cognizant on July 28, 2022 reported a net profit of $577 million for the second quarter ended June 30, up 12.7 per cent from the year-ago period. The company’s attrition was highest compared to peers.

Revenue was at $4.9 billion, up 9.5 per cent in constant currency on a year-on-year (YoY) basis.

Tech Mahindra added 6,862 new employees in Q1 with a total headcount that stood at 158,035. Attrition dropped to 22% compared to 24% in the previous quarter as the company started seeing synergies from its small-town campus strategy.

Infosys has reached a total headcount of 3,35,186 employees in Q1FY23, with a net addition of 21,171 people in the first quarter ending on June 30. The company’s attrition rate has increased to 28.4% in Q1FY23 expanding by 70 basis points from 27.7% in Q4FY22.

Wipro added 15,000 employees in the first quarter of this fiscal with a total headcount of 258,574 employees on June 30, 2022. The company has reported an attrition rate of 23.3 percent, slightly lower than the previous quarter’s 23.8 percent, but significantly higher than 15.5 percent during the corresponding quarter last year.

HCL added 2,089 employees and its attrition rate rose to 23.8 percent as compared to 21.9 percent in the previous quarter.

TCS added 14,136 employees in the April to June quarter with a total workforce of 6,06,331 employees globally and women account for 35.5 percent of the TCS workforce. Its attrition rate climbed up from 17.4 percent in the last quarter of the previous fiscal to 19.7 percent in the reporting quarter.

17 COMMENTS

  1. Cognizant is one of worst company at this moment. Organization culture is very bad, hr policies are very unfriendly, do not give value to old employees, full of politics and nepotism

  2. Who will be there such unethical company . They removed 10 years best candidate by saying poor performance. And the looted 10years life of the candidate forced candidate to apply resignation

  3. Cognizant is good company but need to filter lead and manager level people who does not looking to recognise true talent.

  4. I would say the value of cognizant one will know once they leave it…before saying something wrong on COGNIZANT …think what you have gained ….come on just because of attrition at current situation don’t vomit venom of your thoughts against Cognizant…It’s too big to fail or let you fail….the world’s first CEO/ CFO/ COO. Making company that catered this corporate world with number of leaders . Given a chance I am ready to come back ..I am thankful to past leaders and current leaders for their support during my stint in COGNIZANT.

  5. I got selected in technical. And received email for HR round. But they did not call me and when I checked with them, they said no vacancy. Very unprofessional.

    The core value is lost in Cognizant. Years of efforts to build such a nice organization by Fransisco Desuza is wasted now.

  6. Attrition is The Managing Leaders KPI. If the culture is not employee centric it is a disaster andbound to fail. Take People friendly Leaders who focus on People as the Most imp KPI in their scorecard. It has to be a balanced scorecard.. Not just focus on revenue and bottomline.. That will follow when the people are energized and cared for . How come the Pandemic has not taught these Leaders to care? Cognizant as a company sounds narcissistic. Perform or perish is more a mantra for Leaders than frontline employees.Hire counsellers coaches to help people perform. The pandemic has brought new challenges to all.. Have U helped them cope with that Or just continue driving like herd for results over Zoom meetings and endless board meetings!! Wake up the world is transforming!

  7. I am currently working in Cogni, but already looking for other opportunity. Very bad work life balance. They asked to work on weekends also. No appropriation, No Incentive, No Perks and salaries are also not good. Deserving candidates are highly underpaid. Who’s gonna wanted to work in such place.

  8. Cognizant execs are doing same strategy @mindtree. Hikes @mindtree since new ceo joining 4years are limited to ceo & senior level execs and resigning minds. Same culture is getting will be transferred lti soon

  9. Cognizant is Good company, Thier Aim is to support better to customers n transformation is in progress, these struggles are natural n normal. Up n downs common in every human n companies. Be gratitude towards company. Bad times make u strong n good time make u weak.

  10. Basically cognizant is good company.

    In Cognizant this is happening because psycho middle management includes managers, account directors. Your company will be ruined by these people only.

    Cognizant give double salary for new candidates and they don’t respect the old employees emotions. Cognizant should think about it.

    Some fucking managers are still enjoying the life by ruining the old employees.

    I can mention the names but nothing going to happen from higher management.

    All HR people are there only for shake of name , they are dumb and deff.

    Bajana will work rather than smart and hard work at cognizant.

    All the best cognizant for your future steps.

  11. The whole world is going upside down..Guys figure out a way to be in the system.. work very hard if the company is going through a tuff time. There will be some changes in the policies, work timings, job profile, perks, incentive, increment etc. So what nothing going to harm an employee like you who works for his boss, believes in his/her manager. You will never be expected to work all 7 days but sometimes if your work requires you to strech a bit.. so do it nothing is going to harm..Be loyal and patience.. Cognizant is a great company and thing’s will be fine soon.

  12. Yeah bullshit HRs. Took 2 months to release offer letter. I joined another company & started working.

    Wondering how many good candidates they will get.

    First fire HRs.

  13. HR policies in cognizant is not up to mark not friendly they never approach the candidate,even in each term not bothering to answer for face to face with candidate simply irritating so I request to looks first what the candidate is trying listen first ,with out checking they simply close the ticket.

LEAVE A REPLY

Please enter your comment!
Please enter your name here