The multinational will downsize at the top level, to make way for the juniors.
IT services major, Cognizant, has an employee strength of 2,68,900, of which a significant number is based out of India. The Company is now planning to downsize at the top level to improve the cost structure. The objective is to weed out the deadwood and make way for the juniors.
Cognizant, which follows the January to December financial calendar, expects to pay around $35 million as severance cost, but will benefit in the longer run.
“During the remainder of 2018, we intend to continue to improve our cost structure by further optimising the higher end of our resource pyramid,” said Karen McLoughlin, CFO, Cognizant, at the Company’s investor call after the Q2 results.
For Congizant, revenue for the second quarter of 2018 rose to $4.01 billion—up 9.2 per cent from $3.67 billion in the second quarter of 2017.
Francisco D’Souza, chief executive officer and vice chairman of the Board, said, “We’ve been methodical in developing, aligning, and applying our portfolio of skills, services, and solutions to clients’ needs, so they can become fully digital organisations. And we remain confident in our ability to invest for growth and achieve our financial targets.”