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Know Why Cognizant Is Likely To Lay Off 6,000 Employees[/caption]
Information Technology giant Cognizant Technology Solutions is likely to lay off at least 6,000 employees, amounting to around 2.3% of the total work force as a result of automation of many roles. The variable payout for the employees of 2016 are also expected to be adversely affected.
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Increasing shift towards digital services has rendered many roles redundant, especially for lower-end IT jobs which can now be automated. Cognizant faced a significant drop in growth last year, as the entire year's growth fell to 8.6% as compared to the steady double-digit growth marked in past years.
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While the company usually lays off around 1% from the workforce based on an annual appraisal process that ends in March, the layoffs are more than twice the typical. Last year around 1-2% of the work force was laid off, while two years ago it was 1%.
As of December 31, Cognizant had 2,60,200 employees globally with 1,88,000 in India. It is yet to be announced how many jobs will be effected by the recently suspected lay-offs or which roles will be made redundant.