Cognizant Is Planning To Fire 400 In Senior Management; Severance Package Reduced To 90 Days
It’s not over yet at Cognizant – after major senior leaders stepped down from their posts, the company is planning to fire 400 senior executives.
This is not the first time Cognizant has fired its senior employees; apparently, the CEO of the company is of the opinion that there are too many middle and top level executives in Cognizant.
Find out which employees will be fired in this batch of lay off by Cognizant right here!
Cognizant Will Reportedly Fire 400 Senior Level Employees; Severance Pay Reduced Too
As per reports, American IT multinational firm Cognizant is planning to lay off about 400 senior employees in a staggered manner. These employees will include directors, vice presidents, senior directors, associate vice president, and other mid and senior management roles.
Along with laying off 400 employees, the company will also be reducing the severance pay to three months, which was previously five months. There will also be offered one week’s pay for every year of service completed.
A spokesperson of Cognizant has confirmed the news, saying that Cognizant is a people intensive business, and managing the workforce is extremely crucial while aligning the cost structure of the company with the revenue. Reportedly, the headcount at Cognizant is 290,000 employees across the globe.
He said, “What distinguishes us is that we are enhancing our bench policy by offering additional cash and extended health benefits to those who are or will become unutilized and for whom we unfortunately do not foresee future opportunities.”
Cognizant’s Firing Is A Part Of Cognizant’s Realignment Programme
Similar to all the service firms, Cognizant, too, regulates the supply and demand by benching unutilized employees.
The firing is a part of the Cognizant’s realignment programme to enhance cost structure and delivery effectiveness.
Previously, about two years ago, Cognizant laid off around 200 senior employees at the director level and above. One year prior to that, the company offered a voluntary separation scheme to 400 senior employees. However, this apparently hasn’t been enough for the CEO of Cognizant, Brian Humphries, who believes that the top and middle level are crowded with employees.