Veteran IT company Cognizant Technology Solution Corp will soon lay off 13,000 employees. This cost-cutting is going to fall in the middle and senior-level staff. After announcing the quarterly results, a statement was issued on behalf of the company that in the coming few months, the company has decided to lay off around 13,000 medium and senior-level employees all over the world. Cognizant’s net profit increased by 4.1 percent to $ 497 million in the third quarter which ended in September 2019. A large proportion of Cognizant’s employees work in India.
After speaking to the experts during a post-morning conference at the company’s headquarters, the company has said that it will lay off 10,000 to 13,000 middle-to-senior employees. After this 5000 new employees of these will be replaced in the company with new skills. According to media reports, Brian Humphries, CEO of Cognizant, said the company had made a difficult decision due to organizational restructuring.
Cognizant, which monitors objectionable content on Facebook, has decided to end its contract with Facebook, this decision of the company could lead to the loss of a large number of people. Company officials said the gross shortfall is expected to be a net reduction of about 5,000 to 7,000 roles (about 2% of the company’s total workforce). The company has taken this decision when in some investigations questions were raised about the impact on the work environment and mental health of its employees in the form of moderators.
The New Jersey-based company’s revenue grew 1.9 percent due to financial services, while 1.2 percent fell from healthcare services. It is important to state here that these two segments constitute half of the total revenue of the company. Apart from this, the company will also eliminate several jobs in its other units to invest in other growth areas like AI and cloud. After this decision to cut jobs, it is being said that the company will save 500 million dollars by 2021.