It seems like Cognizant employees are in trouble as the company decided to cut a minimum of 6,000 jobs which is highest number of employee removal for Cognizant. These 6000 employees are almost 2.3% of the total Cognizant work facing certain problems in the IT sector. This is a huge blow for the Cognizant employees and there are reports on the future of these 6000 employees and there are chances even to lay off few more employee s.
The IT segment is changing its pace and rapidly adapting the digital services which can be done automatically. Yes, automation is making IT companies for getting fast paced results with fewer work forces. The automation is now frightening the IT sector employees. It’s time for the government to look up on automation process and if this increases then in coming future new jobs may fall down.
Cognizant slapped not only the 6000 employees but also the remaining employees in the company. The variable payout to employees will get affected and they may not receive payout as they expected. The layoffs have been increased to a great extent when compared to last year. According to few sources, Cognizant is planning on huge layoffs as the low-end jobs will be replaced by bots (automation).
When Cognizant applies automation process, may small jobs will be automated and the extra work force is no longer needed. The low-end work employees have become redundant which made Cognizant to take this decision. The layoffs have been increased than previous years, last year it was 1-2% while this year it went around 2.4% and even more. However the layoffs are being increased every year if we see the past records. Two years back Cognizant layoffs were just 1% and now its 2.4%.
Last year Cognizant was in distress as it has lost its growth. The company maintained a strong growth rate for many years and the growth rate never fallen to a single digit but unfortunately last year annual growth came down to 8.6%. So Cognizant is filtering all the resources and keeping the best of it and relieving the unnecessary resources which are burden to the company. Cognizant stated that it may hire new people according to their technology requirements.
Cognizant has a total work force of 2,60,000 and the majority are from India, the number may reduce in this year. This is making the IT employees frightening and the experts are suggesting that the IT employees should work on their alternatives. So that when their time comes to leave, they can have another source. This will be massive hit if even other companies follow the same.