Cognizant is laying off hundreds of employees in some verticals such as healthcare and life sciences. The number of people being asked to leave may touch around 800, TOI report
A large part of these employees may be from a center in Pune where Cognizant has a subsidiary Trizetto which it acquired in 2015 and specializes in developing software for the healthcare sector.
According to the TOI report, there are some 1500 employees in this offshore centre in Pune and a bulk of the staff now being downsized will be from here. Many of these employees have already been informed out by the HR department on what’s coming.
“The Cognizant’s healthcare and life sciences division has a strength of 30,000 employees currently. And this division ranks 2nd largest in terms of revenue after banking, financial services and insurance (BFSI)”
The reasons analysed behind this decision that beginning the second quarter of 2017, the business has been declining. While it was growing between 9.5% and almost 12%, it touched a low of 4.6% in the quarter ending March this year and further to 3.1% in the last quarter that ended in June. It is said some regulatory measures in the US and other external and internal issues have contributed to this lower growth rate in the past few quarters.
Independent experts feel this current move by Cognizant to downsize its headcount in the healthcare business is a good one and will pay off in the long run.