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Cognizant in Layoff Spree – Mid-Level Employees To face the Heat

Jersey-based HQ Cognizant – the company which has the strongest base in India is reportedly known to go for job slash.

Cognizant to Layoff Mid-Level Employees

The announcement comes amid Cognizant faced a stern plunge in the Q1.

Cognizant announced earnings last week, also nearly halved its 2019 revenue expectations after missing first-quarter results.

“As part of our realignment program, management is currently evaluating various strategies, including additional employee separation programs,” Cognizant said.

The company forecast 2019 revenue growth in the range of 3.6% and 5.1% in constant currency, compared with between 7% and 9% earlier, underscoring the challenges ahead for chief executive officer Brian Humphries, who took over on 1 April from Francisco D’Souza.

The IT firm confirmed it was evaluating “employee separation programmes,” but it didn’t elaborate.

Revenue in its financial services unit fell 1.7% to $1.44 billion in the first quarter, while healthcare services revenue rose nearly 4% to $1.17 billion but missed the $1.20 billion forecast by three analysts polled by Refinitiv. The financial services unit accounts for more than one-third of its total revenues.

Total revenue rose to $4.11 billion, but came in below the company and Wall Street expectations.

According to sources, this time, not only would the job cuts be higher, but they would be even more broad-based, encompassing various levels of employees. “While last time, the job cuts were limited to senior-level staffers. This time, even non-billable mid-level executives such as managers and even staffers in the consulting vertical with low utilisation levels are likely to be affected,” a person familiar with the development said.

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Niloy Banerjee

A generic movie-buff, passionate and professional with print journalism, serving editorial verticals on Technical and B2B segments, crude rover and writer on business happenings, spare time playing physical and digital forms of games; a love with philosophy is perennial as trying to archive pebbles from the ocean of literature. Lastly, a connoisseur in making and eating palatable cuisines.

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