Cognizant to fire 13k employees?

Cognizant to fire 13k employees?

The US-based IT firm Cognizant is likely to cut nearly 7,000 mid to senior-level jobs in the next few quarters, as part of a restructuring process. It is also planning to exit from its content operation business, impacting 6,000 employees. The company which used to moderate content from Facebook is now exiting the professional business entirely by downsizing after multiple investigations revealing poor working conditions and employees exposing to mental health issues due to prolonged graphic content.

The company's CEO Brian Humphries told that the tough decision has been made as a part of organisational restructuring, and they are  all set to let go of more than 10,000 to 12,000 mid-to-senior level employees from their current roles. He also confirmed that it is a part to optimise cost and also to invest in the reskilling and growth. "The gross net reduction of employees will be 5,000 to 7,000 roles," Humphries said. Moreover, there has been a talk that the company is undergoing a reconstructing process under the new CEO Humphries.

Though the exit from content operation business will affect their financial performance, the move will result in the cost-saving of $500-$550 million, primarily arising from layoffs in the senior management level and change in sales personnel compensation model. The management said that the work in content moderation is majorly concentrated on determining whether certain content violates the client's standards and can involve objectionable materials. "This is not in line with the strategic vision of the company."

The company said it now expects full-year revenue growth of between 4.6% and 4.9%, compared with its earlier guidance of growth of between 3.9% and 4.9%. Excluding items, the company earned $1.08 per share, above estimates of $1.05 per share.