Union of IT and ITES employees (UNITE) is not ready to take the recent announcement made by Cognizant to lay off thousands, lightly. According to UNITE, the move is not justified at all, considering the fact that information technology companies are not really going into losses. The members of UNITE claim that these layoffs are only aimed at maximising profits.
Although UNITE is yet to formally meet Cognizant officials or management, the members’ initial reaction to the layoff announcement has been rather bitter and negative. Since over 50 per cent of Cognizant’s workforce comprises employees from India, the downsizing is going to have a strong and lasting impact on the Indian workforce. At least 4,500 people from India are expected to lose their jobs. The number may even go up to 6000.
Cognizant’s workforce in India is about two lakh strong, second only to Tata Consultancy Service.
UNITE has been asking Cognizant employees to demand health benefits for the thousands of employees who are expected to be laid off or reskilled. UNITE suggests that the Company use funds from its 2020 Fit for Growth Plan to provide counselling to its employees who will definitely require help to recover from the mental trauma of losing their jobs. After all, they have families to look after and houses to run.
It is reported that Cognizant posted a net profit of $497 million in the September quarter this year as compared to a profit of $477 million in 2018. Its revenues were have gone up by 4.5 per cent, to $4.25 billion.