Information Technology giant Cognizant Technology Solutions is likely to lay off at least 6,000 employees, amounting to around 2.3% of the total work force as a result of automation of many roles. The variable payout for the employees of 2016 are also expected to be adversely affected.
Increasing shift towards digital services has rendered many roles redundant, especially for lower-end IT jobs which can now be automated. Cognizant faced a significant drop in growth last year, as the entire year’s growth fell to 8.6% as compared to the steady double-digit growth marked in past years.
While the company usually lays off around 1% from the workforce based on an annual appraisal process that ends in March, the layoffs are more than twice the typical. Last year around 1-2% of the work force was laid off, while two years ago it was 1%.
As of December 31, Cognizant had 2,60,200 employees globally with 1,88,000 in India. It is yet to be announced how many jobs will be effected by the recently suspected lay-offs or which roles will be made redundant.