As it struggles with growth in the IT environment which is fast shifting towards new digital services, Cognizant appears set to cut at least 6,000 jobs, which represents 2.3% of its total workforce.
Cognizant is said to be looking to cut roles that have become redundant due to the impact of automation on lower-end IT jobs.
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.
The company 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.
“This is part of the normal cycle. And Cognizant will not be alone in this, most IT companies will have rigorous appraisal process this and employees who have not taken efforts to reskill will not find it easy in the next two years,” quoted ET.
Cognizant also said it was accelerating its hiring in the US and accelerate the pace of acquisitions to grow its digital business.