Cognizant, the Nasdaq listed IT services major with a major presence in India, has denied that it has laid off employees and has declared that it will continue to hire across geographies. Recent reports stated that Cognizant was in the process of laying off around 6,000 employees given the slowing growth rate of the industry.In an e-mail addressed to employees on Thursday, Cognizant president Rajeev Mehta said, “Cognizant has not done any layoffs. Each year, in line with industry best practices, we conduct performance reviews to ensure we have the right associate skillsets to meet client need and achieve our business goals. Resulting actions are performance-based and generally consistent year to year.”
The company continues to hire across geographies. “In our recently ended March 2017 quarter, we hired several thousand professionals globally, including top campus talent and experienced hires,” the e-mail said. The company at the end of March quarter, 2017 had an employee strength of 2.62 lakh. “Our performance management is based on having the right skill mix to succeed in the digital economy, globally. We are committed to being a meritocracy. We believe that’s good for all our associates around the world,” Mehta said in the letter, accessed by FE.
Besides Cognizant, there are reports that other companies like Wipro, Infosys, Tech Mahindra and Capgemini have seen a high percentage of involuntary exits. However, these companies have denied that there have been any layoffs and that these were part of their regular performance review exercise. The Cognizant president also denied reports that company was going slow on its India recruitment while increasing it in US given the pressures from H-1B visas and advocacy of hire American policy. “This is not true. We have been ramping up our recruiting efforts in the US for a number of years. Likewise, we continue to hire in local markets around the world including in India,” the e-mail said.
However it is a fact that Cognizant for the first time introduced a voluntary separation programme (VSP) for its D+ category employees who come under the level of senior directors to vice president. Mehta said that the entire exercise has been voluntary allowing them to optimise the employment structure and skills mix. “VSP makes way for the generation of leaders to step up,” he said. The company has stated that prospects remained strong with a healthy pipeline of deals and large transformational deal wins.