US-listed Information technology giant Cognizant Technology Solutions is likely to lay off at least 6,000 employees, as reported by Times of India.
The move comes at a time when automation of entry-level positions is making thousand of jobs redundant in the Indian IT sector.
Typically, the bottom one per cent of the workforce is weeded out for non-performance, a common practice across IT firms as part of the annual appraisal exercise that ends in March. But as the company is shifting its focus from traditional IT services to digital, Cognizant is reportedly looking ahead at trimming its workforce in larger number by doing away with redundant roles. Globally, the company employs around 260,000 employees, of this around 75 per cent of the workforce is based in India.
Analysts say that many IT roles will soon become redundant due to the impact of automation on lower-end jobs. Many Indian IT companies are struggling with lower growth amid big changes in the technology landscape that is fast shifting towards new digital services.
The company is also investing extensively in training and re-skilling its team, and in substantially expanding its local workforces in the US and other local markets around the world where it operates. “As agile development and the pervasive influence of technology increases, the value of colocation and a consultative approach also goes up,” said Francisco D’Souza, CEO, Cognizant during an earnings call recently.