Cognizant Technology Solutions will cut as many as 13,000 jobs globally as it exits the content moderation business and streamline operation over the next few quarters. The New Jersey-headquartered company as per the rejig plan, some 10,000-12,000 employees in mid-to-senior roles will be removed while 5,000 of them will be reskilled and redeployed in other roles. Cognizant employs nearly 300,000 employees globally.
"We expect the remaining 5,000-7,000 associates to exit the company by mid-2020 either through attrition or role elimination," Cognizant CFO Karen McLoughlin said. A major highlight of the rejig plan is the decision to quit the content moderation business. "Exiting this area will impact an additional approximately 6,000 roles worldwide, though the company intends to work with its partners to explore ways to transition the roles to alternative vendors, thereby reducing the impact to associates," top executives said in a post-earnings conference call with analysts.
COgnizant is one of Facebook's content moderation contractors. CEO Brian Humphries said this business was not part of the not part of strategic vision of the company any longer. Cognizant had 500 employees working out of Indian city of Hyderabad who were scouring through sensitive posts on Facebook.
As many as 75 percent of Cognizant's 290,000 employees are based out of India. This hints at the possibility that the majority of job cuts will happen in India.
"We are working with great care to treat our associates with the dignity and respect they deserve, and to minimise any internal distractions caused by our actions as we get the company back to achieving its full potential," a Cognizant spokesperson told the Hindu Business Line.
The company also revealed a 'Fit-for-Growth' plan that will be rolled out over the next two years. The plan aims to save between $500 million and $550 million in 2021.
