Indian MNC Infosys and US-based Cognizant are reportedly letting go of thousands of people in a bid to cut down and restructure their organisations. Infosys could lay off as many as 12,000 people while Cognizant is removing 7,000 from jobs over the next few quarters. This translates into a cut of 2,200 jobs at that particular level. Infosys currently has 30,092 employees in the JL6, JL7 and JL8 bands.
The report added that as many as 10,000 employees will be removed at the associate (JL3 and below) and middle (JL4 and 5) levels, which constitutes 2-5% of the workforce in those bands. Further, 2-5% of the 971 senior executives employed at the ranks of assistant vice presidents, vice presidents, senior vice presidents and executive vice presidents will also be laid off, resulting in job losses for 50 such executives.
“As a high-performance organisation, involuntary attrition is integral to normal course of business and this should not be interpreted as any mass trimming across any level,” Infosys. Infosys shares dropped as much as 2.5% in intra-day trade on Tuesday, i.e. 5 November, after the news came out. Notably, reports emerged last week that Cognizant would also ask 7,000 of its core employees to exit the company by mid-2020, while another 6,000 roles will be fired as the company exits its content moderation business.