The layoffs for the IT sector in India don't seem to end anytime soon with US-headquartered firm Cognizant likely to fire at least 300 of its top senior executives as a part of the voluntary separation programme that will begin from June. There might be 300-400 job cuts across the globe especially for the positions including director, assistant vice-presidents and VPS. The NASDAQ listed company has even identified the employees who are going to be relieved of their services and a handsome package of one year's salary and added stock benefits would be handed over them.
The decision comes after Cognizant CEO Brian Humphries emphasised on the realignment of structure within the organisation aimed at both cost-cutting as well as stress on the digitisation. For the past few years, the company's revenue growth has slowed down to 5 per cent in 2019 from 20 per cent, which has underlined the need to work on restructuring the firm.
The IT companies in India are estimated to fire at least one million people by next year, according to a recent survey especially those working back end jobs, software department and other menial work. The introduction of automation, machine learning and cloud computing has transformed this industry and gradually replaced the headcount, posing a potential threat to those who are at the helm of affairs, top sources said.
The recent case was that of various IT firms laying off at least one thousand such jobs in India and also paving a way for those who have brushed their skills in new areas. Cognizant is no different and is reportedly planning to hire young people with upgraded skills. The efforts are aimed to negate the effect of headcount spendings on revenue as well as provide more opportunities to 2,85,000 employees on board across the globe.
The fact remains that new technologies will also add 14 lakh new jobs to India alone by 2027 but for that, the firms would have to retrain its existent workforce to cater to the demands of their clients.
