An atmosphere of terror in the IT sector! Big layoff at Cognizant? Excitement with the news that 15000 jobs are at risk!

• Cognizant cuts workforce significantly
• More than 2,50,000 employees in India
• Impact of AI and Automation

Cognizant Layoffs: Once again there is a possibility of large-scale layoffs in the IT sector. Cognizant is looking to significantly reduce its global workforce. According to a Bussiness report, 12,000 to 15,000 employees could lose their jobs. The biggest impact is expected in India, where more than half of the company’s workforce is based. On April 29, the company had estimated costs of $230 million to $320 million under its new project ‘Project Leap’. But the company has not officially announced the number of employee cuts. Therefore, this news has created a sensation right now.

From where will Vijay bring 42000 crores to fulfill the promise, the state is at a loss of 1 lakh crores first, what are the options?

More than 2,50,000 employees in India

Cognizant has more than 3,50,000 employees, of which more than 2,50,000 are in India. As a result, any big decision is likely to have a bigger impact here. As per estimates, the average salary in India is around Rs 15 lakh per annum. If the severance pay is equal to six months’ salary, the cost per employee will be approximately Rs 7,50,000. On this basis, it is estimated that 12,000 to 13,000 jobs may be affected in India alone.

Why decrease the number abroad?

Salaries are much higher in countries like the US, where the average annual salary reaches around $100,000. Therefore, four to six months of severance pay comes to about $50,000 per employee. As a result, fewer employees can be laid off with the same budget. This is why India is likely to have a higher share in the total workforce reduction.

Why layoffs?

The way of working in the IT industry is changing rapidly. Companies are moving away from the old pyramid model. According to experts, customers now prefer to get more done by fewer people rather than large teams. They are less willing to spend on training freshers. The company’s CEO, Ravi Kumar S, has also hinted that the company will now adopt a smaller and more efficient manpower model, which will bring digital labor and human labor together.

Impact of AI and Automation

Automation and artificial intelligence are the main reasons for workforce reduction. Companies are now trying to achieve more productivity with fewer employees. Traditional IT services such as application maintenance and support are not in demand as much as they used to be. As a result, companies are focusing on reducing costs and improving profit margins.

Not just Cognizant

This trend is not new in the IT sector. Over the past year, many large companies have cut staff. Companies like Tata Consultancy Services, Accenture, HCLTech and Oracle have also restructured their manpower. Cognizant has also taken similar steps in the past. As part of its NextGen program, the company cut approximately 3,500 jobs during 2023-24 and significantly reduced office space.

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