Cognizant Will Ask 300 Top Executives To Voluntarily Leave The Company: Have Layoffs Started In Cognizant?
The uneven trend of hiring and firing employees is absolutely normal and is prevalent in numerous A-listed MNCs and IT companies.
On one hand, there are companies that hire freshers at a massive and record-breaking amount, like TCS and Wipro, and on the other hand, are companies which are targeting people and firing them without a care.
We have news about one such organization: Cognizant. The company has confirmed the lay off of no less than 300 employees, and top executives at that.
What is the reason behind this sudden layoff? Is Cognizant in dire straits? Or is this just a regular cost reduction technique implemented by the company? Read on to know the details!
300 Employees to be Fired
Cognizant is aiming to restructure the organization, starting from the top level of the same. Cost cutting is another reason cited behind this top level firing.
The newly appointed CEO of Cognizant, Brian Humphries, is notoriously known for such decisions. While previously, Cognizant, under the leadership of Humphries had targeted middle-level employees, and now top executives will face the axe.
Cognizant has disguised this firing under a ‘voluntary separation’ programme for around 300 employees of the 3,00,400 executives working in the company. Of these 300, the executives are high rank holders and work at the top of the pyramid, such as directors, assistant vice-presidents and VPs. These 300 employees will be across various regions, including India and the USA as well.
The programme will offer a generous severance payout, which will probably be the amount of the salary of a whole year. The employees will be offered other benefits too, such as stock benefits that will depend on the tenure of the employee.
Counselling and outplacement services will also be given to such employees.
Is Cognizant In Trouble?
This is not the first time cognizant has implemented firing employees. It definitely leads us to wonder if the company is in a sticky spot for taking such drastic steps. Or is cost cutting a nice ruse under which the company is hiding its declining state of affairs?
Cognizant has spoken on the matter, saying, “It is business as usual at Cognizant. As our CEO said on the Q1 earnings call earlier this month, our focus is on getting fit for growth and providing opportunities of growth to our more than 285,000 associates around the globe.”
Do you think Cognizant’s approach towards cost cutting and restructuring effective? Share your thoughts with us in the comments section!