Cognizant is also exercising tighter control over expenses through a number of measures, including a slower pace of hiring and reduced travel expenses.
Business
Standard : Cognizant
is readying to let go of a few hundred employees, as it plans another
round of layoffs as part of its strategy to slash costs, the Economic
Times reported on Friday, citing sources with knowledge of the
matter. Further, the report said that more ways of cutting spending
were on the anvil at the IT major.
A
source with knowledge of the matter told the financial daily that
this was part of the appraisal process, which was "getting
stricter". The source said, "If you were a marginal
performer or have not been allocated (a project), then they would
look at beginning a separation process." According to the
report, the number of layoffs would be in a few
hundred,
and employees who have more than eight years of experience would be
targeted.
As
reportedly recently, Cognizant is exercising "tighter control"
over expenses through a number of measures, including a slower pace
of hiring and reduced travel expenses, as the company looks to
re-invest in talent and digital solutions to drive growth. The
US-based company told news agencies that it took "targeted
actions" at senior-level executives in the second quarter, in a
move that is expected to result in $65 million of annualised savings.
"...in
the second quarter, we took targeted actions at the senior levels of
our pyramid to simplify our organisation structure. These actions are
expected to result in $65 million of annualised savings with
approximately half of that to be realised in the remainder of 2019,"
Cognizant CFO Karen McLoughlin said at a recent earnings call. She
added that in the next two quarters, the company expects to further
reduce overall costs through a number of actions.
A
Cognizant executive also told ET that the number of layoffs was being
evaluated and that it would depend on growth as the quarter
progresses. Further, the report said that the IT
major has already suspended non-essential travel and taken other
actions to cut spending.
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