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Bangalore: Brainstorm Knowledgeable will continue. Around 400 The officers Sources said that they will be asked to retain the titles of Director, Senior Director, Associate Vice-President (AVP), VP and SVP. He said, it will be done in a staggered manner.
Two years ago, Cognizant closed about 200 Senior staff At director level and above. Prior to that year, it offered a voluntary severance scheme to 400 senior employees. But CEO Brian Humphries clearly feels that there are still many people in the middle and top.
This time, the severance package has shrunk from 20 weeks of pay for three years of pay for every year of service to one week of pay.
When TOI contacted Cognizant on the matter, its spokesperson said, “In a person-intensive business like ours, managing our workforce effectively is an important element of our aligning cost structure With revenue. We have 290,000 employees serving customers worldwide. Like all service firms, we regularly manage supply and demand with a bench of untapped employees. What sets us apart is that we are enhancing our bench policy and providing additional cash and extended health benefits for those who are or for whom we do not anticipate future opportunities unexpectedly. ”
Latest practice is part of Recovery program Improving cost structure and delivery effectiveness. Under the program, in 2019, it paid $ 22 million in executive transition costs (paid to leaders who leave the firm), $ 64 million in employee separation costs, $ 45 million in employee retention costs, and third-party acquisition costs. Spent $ 38 million. The company said in its 2019 annual report, “We hope that employee segregation completed as part of our recapitalization program will reduce our compensation expense by approximately $ 140 million.”
Rod Bourjois, managing partner at US-based DeepDev Equity Research, said that before Humphries took the helm, the company had become overly complacent – relying somewhat on its previous laurels. And the culture, he said, had moved away from becoming a competency. He said Humphries is laying a foundation, enabling Cognizant to become a re-share growth company that will be enriched with a culture of performance accountability and customer centricity.
“We feel that these changes are causing Cognizant’s desired and unwanted attraction at senior levels of the organization. Wanted attribution has occurred in cases where employees do not have enough performance or service as an ideal role model for the rest of the organization Essentially, we feel that some senior-level attrition is needed to push Cognizant towards a performance-oriented culture, bring Cognizant’s skills to digital, and improve its cost structure To adapt, ”he said.
There are some concerns in India that some of the top roles that were previously based here are no longer there. Two of its four practice areas are led by leaders Greg Hyttenrich – Digital Systems and Technology, based in London, and digital operations led by Ganesh Iyer, based in Singapore. Humphries is working hard to establish a new culture on Cognizant, said HFS Research CEO Phil Furst, and is moving key leadership centers away from India and their strategy closer to clients of firms in the US and UK Is part of.
He added, “The reality is that Cognizant had dropped out of Gordon Coburn’s move in 2016 and Elliott Management’s scathing tone in 2018, and Humphries has been involved to correct the ship since” drinking from the firehose ” is.
However, Cognizant stated that the base location of business heads is completely contingent and no consideration has ever been taken in decision-making. “We are proud of our more than 25 years of existence as a truly global company. Now that we are more actively building our business outside of the US, a more global team makes even more sense, ”it said.
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