Cognizant is laying off 300-400 Director, Assistant Vice-President and VP level employees across India, the US and other geographies with a ‘voluntary separation’ programme in June 19 with a generous severance payout of up to a year’s salary and other stock benefits based on their tenures in the company.
“New CEO Brian Humphries is going back to the basics with a two-pronged approach—strengthening execution and improving the cost structure. The top-deck shake-up is an attempt to keep the pyramid lean to improve its margins and accelerate revenue growth that has taken a beating in the last few quarters”
Cognizant said, “It is business as usual at Cognizant. As our CEO said on the Q1 earnings call earlier this month, our focus is on getting fit for growth and providing opportunities of growth to our more than 285,000 associates NSE -0.97 % around the globe.” Ray Wang, CEO of Constellation Research, said, “The Cognizant layoffs in the D (director and above) band reflect the constant cost cutting you’ll from the new leadership. Expect layoffs of senior folks who have higher salaries with a focus on bringing in more younger talent.”
Cognizant is one of the world’s leading professional services companies, transforming clients’ business, operating and technology models for the digital era. Headquartered in the U.S., Cognizant is ranked 195 on the Fortune 500 and is consistently listed among the most admired companies in the world.