Cognizant differs increases for senior staff
BENGALURU: There is more bad news for senior employees in Cognizant. The company listed on Nasdaq differs the increases and promotions, partly to contain the costs.
“We are making changes in the process of annual salary reviews and promotions plus the manager more. We are refining the process not only to contain costs, but to promote greater professional mobility, promotions just in time and a more meritocratic culture. Therefore, for this population we are postponing all decisions about the salary increase and promotions until next year, ”Cognizant CEO Brian Humphries said in an email to employees.
In major restructuring, Cognizant dismisses 13,000 jobs In the largest layoff exercise ever conducted in the IT sector of India, Cognizant will be separated from some 13,000 employees in the coming months, of which some 5,000 will be re-trained.
This year there have been uncertainties about salary increases in the IT industry, and several companies postponed increases for certain segments, especially middle to upper level executives. The reasons have varied, from the fall in revenue growth to the decline in margins.
Cognizant has said that the current cost optimization campaign will end in 2020 and will result in total charges of approximately $ 150-200 million in compensation and exit costs, and will bring an annual gross savings rate of around $ 500-550 million in the year 2021.
Cognizant has implemented salary increases up to senior associate level. That was reflected in the September payment and became effective as of July 1.
Humphries said in the email that establishing a healthier cost structure is a means to a clear goal: to drive growth. Cognizant, he said, plans to invest more than $ 200 million in four digital battlefields: cloud, IoT, digital engineering and data.
This money, Humphries said, will go toward the previously announced hiring of approximately 500 revenue-generating associates over the next year, a combination of customer service and sales support professionals that will help us expand existing accounts as we generate new ones. . Important investments in Cognizant Academy and technical skills, since our goal is to retrain and redeploy our talent towards digital imperatives. Acceleration of investments in tools and automation and increase of investments in marketing and branding, since our goal is to strengthen our international operations and our digital brand.
Cognizant Academy provides learning resources, laboratories, licenses, certifications, deep immersion classroom sessions and content of alliance partners. Recently, Cognizant said it expects to double its investment in technical education next year.