BENGALURU: IT products and services primary Cognizant is taking a look at trimming its senior-level headcount, a transfer that may lead to severance costs of as much as $35 million for the company, its CFO Karen McLoughlin said.
The company, which has a good portion of its workers based in India, had a total headcount of 2,68,900 at the finish of June 2018.
"During the remainder of 2018, we intend to continue to improve our cost structure by further optimising the higher end of our resource pyramid," she said at the company's investor name after the Q2 results.
As a result of these actions, Cognizant expects to incur $25 million to $35 million in severance costs, McLoughlin said.
Cognizant follows the January to December calendar as its monetary yr.
"Cognizant's separation program has been designed to realign our workforce with our business strategy and recalibrate the personnel pyramid at the upper levels. This program involved few hundred people globally," a company spokesperson said in line with an e mail query by PTI on the have an effect on, total and for India.
The spokesperson added: "When any organisation, especially one of our size, goes through a transition, the human resource management has to attune the workforce to changing business and technology demands. We are confident that our program will help us navigate this shift to digital and help us provide the digital at scale transformation that our clients require".
Further, McLoughlin said this yr, the company has split the timing of the raises and the promotions.
"So, we're currently - as we just announced, raises and promotions for the bottom half of the pyramid, for more the junior folks will happen in Q3; for the more senior folks that will happen in the Q4 time frame," she said.
For the quarter ended June 2018, Cognizant posted 2.97 according to cent drop in its net benefit at $456 million, harm by non-operating foreign exchange losses as a result of rupee depreciation and the preliminary investment of Cognizant US Foundation.
Its earnings crossed $four billion in the April-June 2018 quarter, up from $three.6 billion in the year-ago length, said Cognizant, which follows a January-December cycle as its fiscal yr.
For the 3rd quarter, the company expects its earnings to be in the vary of $four.06 billion to $four.10 billion. Its full-year earnings is forecast to be in the vary of $16.05 billion to $16.30 billion.
"As our second-quarter results confirm, we're making solid progress on our plan to accelerate our shift to digital services and solutions," Cognizant CEO and Vice Chairman Francisco D'Souza had said.
The company remains confident of its skill to speculate for expansion and achieve its monetary goals, he added.
The company had added 7,500 workers (net) in the June 2018 quarter, taking its overall headcount to over 2.68 lakh at the finish of June 2018.
The company, which has a good portion of its workers based in India, had a total headcount of 2,68,900 at the finish of June 2018.
"During the remainder of 2018, we intend to continue to improve our cost structure by further optimising the higher end of our resource pyramid," she said at the company's investor name after the Q2 results.
As a result of these actions, Cognizant expects to incur $25 million to $35 million in severance costs, McLoughlin said.
Cognizant follows the January to December calendar as its monetary yr.
"Cognizant's separation program has been designed to realign our workforce with our business strategy and recalibrate the personnel pyramid at the upper levels. This program involved few hundred people globally," a company spokesperson said in line with an e mail query by PTI on the have an effect on, total and for India.
The spokesperson added: "When any organisation, especially one of our size, goes through a transition, the human resource management has to attune the workforce to changing business and technology demands. We are confident that our program will help us navigate this shift to digital and help us provide the digital at scale transformation that our clients require".
Further, McLoughlin said this yr, the company has split the timing of the raises and the promotions.
"So, we're currently - as we just announced, raises and promotions for the bottom half of the pyramid, for more the junior folks will happen in Q3; for the more senior folks that will happen in the Q4 time frame," she said.
For the quarter ended June 2018, Cognizant posted 2.97 according to cent drop in its net benefit at $456 million, harm by non-operating foreign exchange losses as a result of rupee depreciation and the preliminary investment of Cognizant US Foundation.
Its earnings crossed $four billion in the April-June 2018 quarter, up from $three.6 billion in the year-ago length, said Cognizant, which follows a January-December cycle as its fiscal yr.
For the 3rd quarter, the company expects its earnings to be in the vary of $four.06 billion to $four.10 billion. Its full-year earnings is forecast to be in the vary of $16.05 billion to $16.30 billion.
"As our second-quarter results confirm, we're making solid progress on our plan to accelerate our shift to digital services and solutions," Cognizant CEO and Vice Chairman Francisco D'Souza had said.
The company remains confident of its skill to speculate for expansion and achieve its monetary goals, he added.
The company had added 7,500 workers (net) in the June 2018 quarter, taking its overall headcount to over 2.68 lakh at the finish of June 2018.
Cognizant looks to trim senior-level headcount
![Cognizant looks to trim senior-level headcount]()
Reviewed by Kailash
on
August 03, 2018
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