New Delhi: At a time when the employment situation in India is not in an impressive state, IT major Cognizant Technology Solution Corporation has announced that it will lay off at least 7,000 mid-senior level employees. Apart from that, it will exit from its content moderation business which will also impact an additional 6,000 jobs. Also Read - L&T distances itself from Cognizant's Indian bribery case
Cognizant’s Chief Financial Officer Karen McLoughlin said in a conference call that it will “comply with contractual obligations and determine the best path forward with affected clients”. Also Read - Zero tolerance for illegal, improper conduct: Cognizant CEO to staff
Cognizant is one of Facebook’s content review contractors. According to reports, 6,000 employees worldwide work in Cognizant’s content monitoring segment. This segment determines whether certain content violates standards. According to a Reuters report, around 500 staff in Hyderabad monitor Facebook content. Also Read - Cognizant Agrees To Pay $25 Million To US Security and Exchange Commission: Report
The company has that it plans to reskill and redeploy about 5,000 of the total impacted employees.
“The gross reduction is expected to lead to a net reduction of approximately 5,000 to 7,000 roles (about 2% of the company’s total population),” company executives said, according to reports.
The move is a part of restructuring effort undertaken by Humphries to restore Cognizant to its former glory. The cost of the initiative was expected to be between $150 million and $200 million, primarily related to severance and exit costs, the company said. For the third quarter ended September, the company registered a revenue of $4.25 billion, up 4.2 per cent for the same quarter previous year.
(With Agency Inputs)