It seems like Cognizant’s Mid-level Employees Might Lose Their JobsCognizant’s Mid-level Employees Might Lose Their JobsCognizant’s Mid-level Employees Might Lose Their JobsCognizant’s Mid-level Employees Might Lose Their JobsCognizant’s Mid-level Employees Might Lose Their JobsCognizant’s Mid-level Employees Might Lose Their JobsCognizant’s Mid-level Employees Might Lose Their JobsCognizant’s Mid-level Employees Might Lose Their JobsCognizant’s Mid-level Employees Might Lose Their JobsCognizant’s Mid-level Employees Might Lose Their Jobsr. Compared to the previously expected growth forecast of 7 to 9 percent for 2019, the company now expects itself to grow by 3.9 to 4.9 Percent only.
It recently said that its headcount growth has surpassed the revenue growth for the previous two quarters; this makes it clear that the company is considering job cuts on a mid-level employee with rich experience.
Moreover, the company said, “As part of our realignment program, management is currently evaluating various strategies, including additional employee separation programs. The timing, nature, and magnitude of these initiatives are not finalized at this time. “
In fact, the company has been cutting jobs continuously for the last two years. Last August the company said, it was cutting 200 senior jobs to make way for juniors to grow. For this, the company had a voluntary separation plan as well.
The departure of the Gajen Kandiah, the president of Digital Business makes it clear that the company has to weather the storm in order to get back on track of growth. For this, the company has appointed Malcolm Frank as a replacement to Kandiah.
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CEO, Brian Humphries Has a Tough Task to Accomplish
Many analysts believe that reviving the company from this phase will be a tough task to accomplish. The slow growth of the company and the rising problems it is facing every now and then is a result of its investor Elliott Management.
The investor has a 4 percent stake in the company and as per reports, it has asked Cognizant to cut costs to raise its margin, return capital to shareholders and shake up its board. The company bends over and accepted all the demands of its investor.
In 2017, the company committed $3.4 Billion in share repurchases and dividend. The company’s focus has been on embracing automation, rationalizing staff, and shifting focus towards gaining more revenue via its digital business.
Karen McLoughlin, the Chief Financial Officer has shared it to the management that he intends to bring the cost structure closer with the newly revised revenue expectations. This is why the company intends to relieve most of the employees from mid-senior levels and handing their jobs to budding senior employees.
In doing this, the company has to make sure it does not fire the employees rather make a plan so that employees have great choices for their future. Relieving an employee all of a sudden cannot be considered a right move as the company is still making a great profit. Only the time will tell if it manages to satisfy all the parties, i.e. the investor, shareholders, and employees.
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