New Delhi: Nasdaq-listed Cognizant firm is reportedly deferring the benefits due to its senior employees such as increments and promotions until next year in an attempt to contain costs, stated a report.
In an official email to the employees of Cognizant, CEO Brian Humphries as quoted by a Times of India report said, “We are making changes to the manager-plus annual salary revisions and promotions process. We are refining the process not simply to contain costs, but to drive greater career mobility, just in time promotions and a more meritocratic culture.”
Last month, the IT major Cognizant Technology Solution Corporation had announced its decision to lay off at least 7,000 mid-senior level employees. Apart from that, the firm’s decision to exit from its content moderation business will impact an additional 6,000 jobs. This cost optimisation drive is said to end by 2020, added Cognizant, as per the report. In order to have a tight grip over the expenses, Cognizant is undertaking a slew of measures which includes lowering the pace of hiring and reducing travel overheads.
Notably, Cognizant has posted its net profit for the June 2019 quarter which is an increase of 11.6 per cent to $509 million. Besides, the firm’s revenue has increased by 3.4 per cent to $4.14 billion in the year-ago period. According to news agency PTI, the annual revenue of Cognizant is expected to increase by 3.9 to 4.9 per cent this year.