A prominent IT employee union has claimed that IT behemoth Cognizant can fire upto 6000 employees, and have described the decision of Cognizant to fire 7000 employees as ‘unjustified’.
What is the logic of this IT employee union?
IT Employee Union: 6000 Indians Can Be Fired
Chennai-based Union of IT and ITES employees (UNITE) has claimed that Cognizant can fire upto 6000 employees in India.
They have strongly reacted to media reports, that Cognizant can fire upto 13,000 employees globally, to save costs, and to increase profits.
We have already reported that Cognizant will shut down their content moderation business, and 7000 employees face job loss. Another 6000 employees from other verticals and departments face layoffs as well.
As per the employee union, 50% of all Cognizant employees are based in India, and such a massive layoff exercise will result in termination of more than 5000 employees in India itself.
Bharanidharan, President of UNITE said, “This happens in IT companies every two years where they do a rationalisation exercise and end up sacking employees whose salaries are higher. Cognizant has now openly said 7000 people will be laid off. More than 50% of their workforce is from India. We are expecting that nearly 4,500-6000 people from India itself will be retrenched,”
Cognizant hasn’t yet confirmed the news about terminating 7000 employees, and have not revealed whether any Indian employees will be fired or not.
The Logic of UNITE Makes Sense
As per the Chennai based IT employee union, Cognizant and other IT firms are not under any loss, and are making profits. Under these circumstances, terminating employees to reduce costs doesn’t make any sense.
They have claimed that every 2 or such years, IT biggies start firing employees who are receiving higher salaries.
And this claim has some truth as well.
As per the numbers shared by Cognizant, their net profit this quarter (ending September) increased to $497 million as against $477 million last year.
Their revenues too has increased by 4.5% to $4.25 billion.
Cognizant is India’s 2nd biggest IT employer, with more than 2 lakh employees in India. TCS is at #1 position.
We will keep you updated, as more details come in.
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