New Delhi: Nasdaq-listed IT services firm Cognizant has reduced the bench time of its employees, who are not on billable projects, from a maximum of 60 days to just 35 days, stated a report. This means employees could be asked to exit after a span of 35 years. Besides, the employees have to serve a notice period which is likely to take another 60 to 90 days, added the report.
The Nasdaq-listed firm has been reportedly deferring the benefits due to its senior employees until next year as a cost-containing measure, stated a report. In an official email to the employees, Cognizant, CEO Brian Humphries as quoted by a Times of India report had 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.” According to Cognizant, this cost optimisation drive will conclude by 2020.
A report quoted a source as saying that those employees who are unwilling to relocate to another city or perform another function might have to exit. IT major Cognizant had announced its decision on September to lay off at least 7,000 mid-senior level employees. Besides, the firm’s decision to exit from its content moderation business would impact an additional 6,000 jobs, stated a report. Meanwhile, the firm s undertaking a slew of measures including lowering the pace of hiring and reducing travel overheads to have a tight grip over the expenses.