Cognizant Technology Solutions (CTS) has laid off approximately 200 senior and senior employees for the position of director this year, with a severance pay of three to four months. The company’s plan is to align its talent pool with the new digital demands of firing those who have not adapted to the current technology environment and to recruit those with new skills.
The full year was completed in August and the company is committing $35 million in severance pay. Last year, he proposed a voluntary departure program for 400 executives. The program this year was not voluntary.
“As part of our ongoing workforce management strategy, we ensure we have the right skills to enable employees to meet the needs of their customers and achieve our business goals. This process has led to changes, including the transition of some employees out of the company. We continue to enhance our capabilities and recruit for roles in all of our practice areas of society. The details of separation pay or any other terms of employment are confidential,” said the company at the request of a comment.
Recently, Tech Mahindra had lowered the retirement age of employees. Tata Consultancy Services also doubled the salary of fresh recruits to attract the younger generation. Some of the affected employees who spoke to YOU stated that they were asked to sign a mutual release agreement with the company, in which they acknowledged that they would not sue the company, its directors or officers.
The contract also states that the employee voluntarily entered into the agreement. The layoffs have worried employees about how tectonic technological changes are accelerating skills layoffs.
Overall, however, the company’s workforce is growing, particularly in the new areas, which is rising sharply. “By the end of the year, we expect our global workforce in the cloud to have more than 20,000 employees. Today, about half of our cloud-centric employees work in our digital systems and technologies practice, which combines applications, infrastructure, and security to help customers quickly deliver new services and applications, support product development to the next level. large scale and reduce the payback period. from year to month, “said Francisco D’Souza, CEO of Cognizant, during the June quarter earnings call.
This move is part of the company’s plan to align its talent pool with new requirements – fire those who have not adapted to current technology and bring in those with new skills.