Cognizant promotes 70 assistant vice presidents amid exits galore
Highlights
- Cognizant is clearly following a dual strategy, where it is signalling to some that they are valued, and telling many others that they should consider taking the separation programme
- Last year, it let go off about 200 senior employees at the director level and above
(File photo)BENGALURU: Cognizant has promoted 70 assistant vice presidents (AVPs) to vice presidents (VPs). These promotions come close on the heels of the announcement of a voluntary separation programme floated for 300-400 executives holding the title of director, including assistant VPs and VPs.
The 70 promotions are a part of the annual appraisal cycle that comes with increments. When TOI contacted Cognizant, the company said, “Yes, as part of our annual promotion processes, 70 of our AVPs across business units and geographies have been promoted as VPs. These business and corporate leaders have distinguished themselves by delivering strong results, inspiring followership, and helping set the course that enables us to deliver innovative solutions to clients,” said a Cognizant spokesperson.
The company is clearly following a dual strategy, where it is signalling to some that they are valued, and telling many others that they should consider taking the separation programme. The latter is part of an effort to cut costs and flatten the organisation.
In response to a question from an analyst recently about flattening the organisation structure, Cognizant CFO Karen McLoughlin had this to say: “We outlined a framework back in 2017, where we talked about opportunities to reduce costs through better utilisation, to managing our pyramid, to managing our overhead structure, simplifying our corporate structure etc. But we believe there's a lot more opportunity there to be had. And, in particular, simplifying the organisation structure and really getting back to allowing our account teams to be the drivers of the business and being able to make decisions quickly and on the ground.”
McLoughlin said the company will take those dollars and really redirect those dollars to investment and growth. “And that's both in terms of making sure that we have enough feet on the streets or enough salespeople, enough client partners with the right skills that we're surrounding them with the right talent in terms of consulting talent, and digital talent, and that we also continue to build out solutions and capabilities,” she added.
Last year, it let go off about 200 senior employees at the director level and above. The programme was involuntary.
The 70 promotions are a part of the annual appraisal cycle that comes with increments. When TOI contacted Cognizant, the company said, “Yes, as part of our annual promotion processes, 70 of our AVPs across business units and geographies have been promoted as VPs. These business and corporate leaders have distinguished themselves by delivering strong results, inspiring followership, and helping set the course that enables us to deliver innovative solutions to clients,” said a Cognizant spokesperson.
The company is clearly following a dual strategy, where it is signalling to some that they are valued, and telling many others that they should consider taking the separation programme. The latter is part of an effort to cut costs and flatten the organisation.
In response to a question from an analyst recently about flattening the organisation structure, Cognizant CFO Karen McLoughlin had this to say: “We outlined a framework back in 2017, where we talked about opportunities to reduce costs through better utilisation, to managing our pyramid, to managing our overhead structure, simplifying our corporate structure etc. But we believe there's a lot more opportunity there to be had. And, in particular, simplifying the organisation structure and really getting back to allowing our account teams to be the drivers of the business and being able to make decisions quickly and on the ground.”
Cognizant begins to rationalise top deck
Nasdaq-listed Cognizant initiated rationalisation of its top deck with a ‘voluntary separation’ programme at the director level and above in June with a generous severance payout of up to a year’s salary and other stock benefits based on their tenures in the company.
McLoughlin said the company will take those dollars and really redirect those dollars to investment and growth. “And that's both in terms of making sure that we have enough feet on the streets or enough salespeople, enough client partners with the right skills that we're surrounding them with the right talent in terms of consulting talent, and digital talent, and that we also continue to build out solutions and capabilities,” she added.
Last year, it let go off about 200 senior employees at the director level and above. The programme was involuntary.
Cognizant Technology Solutions lays off 200 senior executives
Cognizant Technology Solutions (CTS) has let go of about 200 senior employees at the director level and above this year, with a severance payout of three-four months.
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