Cognizant hints at laying off 3,500 employees
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Cognizant, a consulting company with a strong presence in India, said in a statement that around 3,500 employees are likely to be affected under the restructuring plan NextGen. This will be about one percent of the total 3.51 lakh employees of the company.
American company Cognizant, which provides information technology (IT) services, announced on Thursday a three per cent year-on-year increase in net profit in the January-March quarter, and also expressed the possibility of job loss of about 3,500 employees. Cognizant, a consulting company with a strong presence in India, said in a statement that around 3,500 employees are likely to be affected under the restructuring plan NextGen. This will be about one percent of the total 3.51 lakh employees of the company.
The company launched the NextGen program last year with a view to simplify its operating model, improve operations and align with hybrid model to workplace needs. Its effect is expected to come in the form of reduction in the number of employees. At the end of the first quarter of the calendar year 2023, the number of employees of Cognizant has decreased by 3,800 compared to the October-December 2022 quarter to 3.51 lakh. However, the employee attrition rate came down to 23 per cent in the quarter under review as compared to 26 per cent in the December quarter.
Cognizant reported a net profit of $580 million for the January-March quarter as against $563 million in the year-ago quarter. However, the company’s revenue during this period came down to $ 481.2 million with a slight decline. The company has projected revenue of $19.2 billion in the full fiscal year 2023. Ravi Kumar S, who took over as CEO of Cognizant in January this year, said the company has a strong base to post growth.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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