Cognizant’s Widespread Restructuring Could Lead To More Job Cuts
IT company Cognizant is likely to lay off hundreds of employees as part of its restructuring move to reduce costs and improve growth, people with knowledge of the matter said. Cognizant previously announced that it was looking at bolstering its variable pay component of salaries to reduce costs. An insider explained that the move is part of the company’s stricter appraisal process and will mean that if an employee is a marginal performer, or does not have a project, the company will start the separation process, which will focus on workers with over eight years of experience.
According to a company executive, the number of employees to be laid off was being assessed and would depend on growth as the quarter progresses. Cognizant has already cut down on unnecessary travel and adopted other methods to reduce spending. Earlier this year, the firm cut its revenue growth forecast, noting that its headcount addition had exceeded revenue growth, resulting in thinning margins.
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