Oct 12: Cognizant Technology Solutions (CTS), the multinational IT major, is downsizing and has laid off around 200 senior employees at the director level and above. This is said to have been done with the aim of aligning its employees to the novel digital requirements.
According to newspaper reports, the employees were paid the compensation price for three-four months. CTS spend around $35 million to pay off its employees in August.
Reports added that, by implementing the workforce strategy, the company is making sure that it has apt employee skills using which the client needs and business goals can be achieved. The strategy brought in many changes; employees transitioning out of the company are part of this.
The company is also hiring in all practice areas and looks forward to enhancing its capabilities. CTS also mentioned that the conditions of employment and severance are private.
Reports added that the employees who had to face the downsizing revealed that a mutual release agreement was asked to sign by the company. The agreement states that the employees will not be taking any legal action against the company, directors and its officers. It also states that the agreement was signed by an employee willingly.
On a compensation of $35 million, the company had shed 400 senior employees in the name of the voluntary separation package in 2017. As per the report, the employee strength of the company is increasing. By the end of the year, the company’s global cloud workshop is expected to outdo 20,000 associates.