The billion dollar multinational corporation, Cognizant is all set to layoff 6,000 people which represents 2.3% of its total workforce. The company says that it is rapidly shifting towards providing new digital services, and cites this a s a reason for the action.
Cognizant is a multinational corporation that provides digital, technology, consulting, and operations services across many countries in the world.
Sources which are privy to the matter also suggested that the variable payout to employees for 2016 is likely to be affected.
Undoubtedly, digitization has made workforce freer and idle, which is why companies have been on a layoff run for quite sometime now. Now, Cognizant has joined the league.
Most importantly, lower-IT-end jobs have been affected the most due to usherance of digital automation techniques.
Last year, the layoffs were about 1-2% while two years ago, it was about 1%. Cognizant had 2,60,200 employees globally as on December 31, with 1,88,000, or 72%, based in India.
“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 company spokesperson informed through digital means to a media agency.
As per records, the company has indulged in a layoff exercise on an yearly basis. The company sacks the bottom 1% of it’s under-performing workforce. For this purpose, the company runs an appraisal process in an yearly fashion.
The company has been witnessing strong double digit growth numbers in the last few years. However, 2016 was an exception. The company’s growth rate was plummeted to 8.6% on YoY (Year on Year) basis.
The company is struggling to keep at pace with it’s past year performances, if sources are to be believed.