Cognizant has decided to layoff around 350 people from mid to senior level positions. The salary packages of these employees ranged from Rs 80 lakh to Rs 1.2 Crore. The list of these employees has been submitted to the CEO’s office. This move by the company comes in the wake of cutting cost.
These are part of the 10,000 to 12,000 positions which the company said that they would remove globally, in the month of October this year. The employees who are being let of by the company are aged between 50-55 and according to media reports most of them are based out of India.
Though this was just a small part of the larger layoffs which will take place over the course of an year, but the company will be saving a lot as these employees were some of the highly paid people in the company.
Cognizant is planning to shift its focus on digital led services business from traditional software management businesses.
Under the leadership of Brian Humphries, CEO, Cognizant, the company is going through a major re-structuring programme. This year in May, the company gave indications of layoffs to cut cost.
The total workforce of Cognizant stands at more than two lakh globally. India is the largest offshore delivery location for the company.
Technology services companies such as Tata Consultancy Services, Infosys, HCL Technologies, Wipro, Tech Mahindra, and Cognizant used to bill their clients on the basis of number of hours spent by their employees.
Now, users are increasingly consuming services on smartphones and handheld devices, the contacts are becoming outcome based. This has disrupted the material and time based business model of IT companies.