Cognizant may fire more than 6,000 in appraisal this year
BENGALURU: Cognizant is expected to fire more than 6,000 employees as part of its regular appraisal cycle this year, two sources told ET. Media reports have suggested as many as 10,000 could be let go though it has been specified that this is part of Cognizant's normal appraisal process.
“This is part of the normal cycle. And Cognizant will not be alone in this, most IT companies will have rigorous appraisal process this and employees who have not taken efforts to reskill will not find it easy in the next two years,” a source with knowledge of the matter told ET.
In a typical year, Cognizant generally lets go of 2-3% of its workforce, who are under-performers. Cognizant has over 265000 employees.
“As part of our workforce management strategy, we conduct regular performance reviews to ensure we have the right employee skill sets necessary to meet client needs and achieve our business goals. This process results in changes, including some employees transitioning out of the company,” a Cognizant spokesperson said.
“Any actions as the result of this process are performance-based and generally consistent with those we-'ve made in previous years.
In any given year, the numbers may bounce a percentage here or there, but this is part of our standard practice. At the same time, we continue to enhance our capabilities and hire for roles across all our practice areas in the company,” the spokesperson added.
The move comes as the company is in the process of boosting its margins and returning over $3 billion to shareholders.
In February, the company said it would raise its non-GAAP operating margin target to 22% from its historical 19-20% target.
Cognizant also said it was accelerating its hiring in the US and accelerate the pace of acquisitions to grow its digital business.
“This is part of the normal cycle. And Cognizant will not be alone in this, most IT companies will have rigorous appraisal process this and employees who have not taken efforts to reskill will not find it easy in the next two years,” a source with knowledge of the matter told ET.
In a typical year, Cognizant generally lets go of 2-3% of its workforce, who are under-performers. Cognizant has over 265000 employees.
“As part of our workforce management strategy, we conduct regular performance reviews to ensure we have the right employee skill sets necessary to meet client needs and achieve our business goals. This process results in changes, including some employees transitioning out of the company,” a Cognizant spokesperson said.
“Any actions as the result of this process are performance-based and generally consistent with those we-'ve made in previous years.
In any given year, the numbers may bounce a percentage here or there, but this is part of our standard practice. At the same time, we continue to enhance our capabilities and hire for roles across all our practice areas in the company,” the spokesperson added.
The move comes as the company is in the process of boosting its margins and returning over $3 billion to shareholders.
In February, the company said it would raise its non-GAAP operating margin target to 22% from its historical 19-20% target.
Cognizant also said it was accelerating its hiring in the US and accelerate the pace of acquisitions to grow its digital business.
