Cognizant on growth path plans massive layoffs

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Cognizant CEO, Brian Humphries flagged off a net reduction of employees move afoot, which may result in the laying off of 5,000 to 7,000 people. He made this statement on the side lines of the third quarter earnings announcement.  More than 50% of the lay-offs will be from India and it will comprise middle level to senior level employees.

The CEO informed that the lay-off exercise would be completed by June 2020. The layoffs are expected to bring in annualized savings to the tune of $ 500 to $ 550 million. In the short run however, the company will have to cough up $ 150 to $ 200 million.

Humphries stressed that the move was afoot to ensure that the company gets back to the growth track. “A few quarters from now, we may start hiring people,” he concluded.

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