Cognizant Will Fire 800+ Employees From Pune; Healthcare Division Severely Impacted In This Layoff?
US Based IT behemoth Cognizant is all set to terminate 800+ employees from Pune, as their healthcare division is under severe stress.
This is not the first time this year that Cognizant is firing employees, and we may expect more terminations in the days to come, since profits are diminishing, and investors are calling for heads to roll.
Cognizant’s Latest Terminations Is In Healthcare
As per an ET report, Cognizant will fire these 800 employees from Trizetto, which is Pune based healthcare software and services company.
Cognizant had acquired Trizetto for $2.7 billion, and they employ around 1500 employees, all directly under the payroll of Cognizant.
Now, healthcare is Cognizant’s 2nd biggest revenue generator after BFSI, and globally, mroe than 30,000 employees work for that.
Although Cognizant hasn’t confirmed this development, but they have neither denied it.
In a statement, the company said, “We have a market-leading position in healthcare and a position of considerable strength upon which to build, especially in digital. We will not comment on rumours and speculation. As we stated on our latest earnings call, fundamental market changes continue to reshape healthcare and we are a key partner to many of the largest payers and providers in this industry.”
Some employees have confirmed with ET that HR has already called for the full and final meeting, and the pink slips will be gradually distributed.
Which employees out of 1500 will be fired first hasn’t been revealed yet.
Cognizant’s Turbulent Times Continue
In May this year, Cognizant posted their weakest financial growth ever, and although this was partly due to the judicial settlement they made in India, it impacted their overall morale.
Healthcare, in which the recent firings will be made, was one of the worst performers, and along with BFSI and Software services, they experienced massive erosion of profits.
The same month, it was reported that Cognizant will ask senior most employees to retire, and this way, they planned to save costs.
At the same time, it was found that their CEO is earning whooping 421 times more than the average employee in the company!
We have already seen that Cognizant’s H1B visa request has dropped by 80%, and thousands of campus hiring in India and globally has been put on hold.
We will keep you updated, as more details come in.