Cognizant may lay off about 6,000 employees, report claims
1. The IT firm is said to be looking to cut roles that have become redundant due to the impact of automation on lower-end IT jobs
2. In 2016, the company had laid off about 1 to 2% while two years ago it had laid off about 1% employees
3. Cognizant had 2,60,200 employees globally as on December 31, with 1,88,000, or 72%, based in India
The US-headquartered IT firm Cognizant is likely to lay off at least 6,000 employees on account of automation leading to some roles becoming redundant in the company, The Times of India reported.
The company's latest count of layoff represents 2.3% of its total work force and it struggles with growth in an IT environment that is fast shifting towards new digital services, it said.
The news report citing the sources familiar with the development said the company's variable payout to employees for 2016, too, is expected to be adversely affected.
The layoffs are likely to be more this year than the routine annual exercise that weeds out the bottom 1% of the workforce for non-performance as determined by the annual appraisal process that ends in March, it said.
The IT firm is said to be looking to cut roles that have become redundant due to the impact of automation on lower-end IT jobs.
In 2016, the company had laid off about 1 to 2% while two years ago it had laid off about 1% employees.
Cognizant had 2,60,200 employees globally as on December 31, with 1,88,000, or 72%, based in India, the news report said.
"As part of our workforce management strategy, we conduct regular performance reviews to ensure we have the right employee skill sets necessary to meet client needs and achieve our business goals. This process results in changes, including some employees transitioning out of the company," the report said quoting Cognizant spokesperson, as saying in an e-mailed response.
However, it was not immediately clear how many jobs in the country or which roles would be made redundant.
Cognizant faced one of its most challenging times last year, with full-year growth down to single digits, 8.6%, after many years of strong double-digit industry leading growth, it further said.