Global IT biggie Cognizant, which suffered their worst ever growth this year, may fire more employees to cut costs, and to remain stable, financially.
News is coming in that campus hiring has been delayed, and there is no news when the freshers who have been given offer letter, will join back.
What exactly is happening here?
Cognizant May Fire More Employees
As per some insider reports coming in, Cognizant CEO Brian Humphries is under immense pressure to lower down costs, and increase revenues.
As part of this exercise, more heads may roll.
Hundreds of employees, globally, can be asked to leave in the coming days.
In March this year, Cognizant reported a drop of 18% in net profits, even as operating margins dropped to an alarming 13.1% from 16.8% last year.
In May, we reported that top executives from Cognizant are being asked to leave, primarily because of cost-cutting exercise.
Same month, we also reported that Cognizant has initiated a mass-level layoffs of mid-level employees, globally.
Who Will Be Fired?
If we believe the statements given by an unnamed insider, those employees who are not contributing to any project as of now, and those whose performance have been described as below average, will be the first to be asked to leave.
That person has described this process as a ‘strict appraisal’, and the ‘separation process’ can be initiated anytime.
He said, “It is part of the appraisal process; it is getting stricter. If you were a marginal performer or have not been allocated (a project), then they would look at beginning a separation process.”
He also said that employees with more than 8 years of experience will be targeted first.
Campus Hiring Delayed?
As projects are getting delayed, and employees are kept on bench, joining dates of freshers recruited from campuses have been delayed, without any date of joining.
An insider source said, “When more people are sitting out without projects, it’s quite obvious that freshers joining will be delayed,”
Posts from a Facebook Group called ‘Cognizant Freshers’ (mostly Indians) has revealed that there are hundreds of freshers from India, who are in a limbo right now, as they are not aware when they will be asked to join.
Cognizant as 1.94 lakh employees in India, and 2.88 lakh employees globally.
We will keep you updated, as more details come in.
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