Cognizant has stated that it will lay off 3500 people, or 1% of its overall workforce, in a new wave of layoffs. According to The Economic Times, the corporation made this decision to rationalize its workplace space while simultaneously cutting expenditures.
This (employee impact) will be across corporate functions, overheads who are non-billable workforce,” Cognizant CEO Ravi Kumar told ET. Likewise, real estate will cause a fundamental shift in our costs. Every corporation in India employs no more than 10-15% of its workers in its offices. Furthermore, 30-40% of the Indian IT workforce is located in tier II and III cities. They have not returned. I need to build social capital in those cities.
According to the article, the corporation would spend $200 million on employee severance and other fees, and it presently employs 3,51,500 people.
Aside from that, the firm has indicated that its sales are likely to fall in 2023 as a result of the current hardship and economic slowdown in the IT sector.
Cognizant just dismissed CEO Brian Humphries. Humphries stepped down as CEO on January 12 and remained as a special advisor until March 15. Although there were rumors that Humphries had been fired, the corporation made no formal announcement at the time to confirm this.
Over the last few years, we believe Cognizant has evolved to embark on a strong growth trajectory, become more focused and competitive, and better serve its shareholders and other stakeholders,” said company chairman Stephen J Rolheder in his proxy statement letter to shareholders. The Board has closely tracked this evolution and has witnessed consistent strategic and operational improvement. However, in planning for 2023, the Board saw the need for Cognizant to move quicker, boost commercial momentum, and accelerate revenue growth. We felt that doing so would necessitate a CEO transfer.
