IT giant Cognizant Technology Solutions is likely to lay off more than 6,000 employees or around 3% of its workforce. Officials said the lay-offs were based on “under performance and skill mismatch” as well as the rise in digitisation and automation. Officials said the actual number of employees dismissed will be known by March 31, once the company’s appraisals are completed.
“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.
Cognizant is said to be looking to cut roles that have become redundant due to the impact of automation on lower-end IT jobs.
The layoffs are likely to be more this year than the routine annual exercise that weeds out the bottom 1% of the workforce for non-performance as determined by the annual appraisal process that ends in March.
A spokesperson for Cognizant said as part of the workforce management strategy, the company conducts regular performance reviews to ensure it has the right employee skill sets necessary to meet client needs and achieve business goals. This process results in changes, including some employees transitioning out of the company.
By December 2016, the firm had 2.60 lakh staffers across the globe with over 75% based in India. In 2015, the United States-based company laid off 1% of its staff and dismissed 2% of its employees in 2016.