The US-based IT company Cognizant has decided to let go of nearly 350 of its senior employees who earn an annual salary of about Rs. 80 lakhs to Rs. 1.2 crore, this is because the company wants to cut down its expenditure and turns its focus more towards the digital processes than traditional.
Most of the employees on the list are based out of India and are aged between 50-55 years. The list has been submitted to the CEO, Brian Humphries.
The people mentioned in the list are 10000-12000, mid to senior-level position globally, they say “We have nothing to add to what was stated in our Q3 earnings call.” On a conference call, the company had said it would reskill and redeploy about 500 of those impacted.
Though the company could significantly bring down costs as they are high paying employees. “This is a move to cut costs and improve margins. We can expect other moves to cut costs and this is likely to follow a model of further reorganization with some additional headcount reduction,” Peter Bendor-Samuel, chief executive at IT.
Other Cognizant employees said “We anticipate we are getting close to the end of this cycle. We do not anticipate this will be picked up and replicated with other service providers.
On a conference call, Karen McLoughlin had said, the company’s actions were “critical for long-term health and competitiveness of the company”.