New Delhi: In a major development in the Information Technology (IT) sector, Cognizant Technology Solution Corporation is expected to lay off around 6000 people by next year from its content moderation business, as it has decided to close this service.
Some reports reveal that the company has decided to lay off around 7000 mid-senior level employees from its other two units (financial services and healthcare services) and invest in other segments to compensate for the losses.
According to reports, the company has taken this decision based on several factors concerning work atmosphere and the impact of work on the moderators’ mental health.
Cognizant, is one of the companies that reviews Facebook content on a contract basis. Now that the company’s contract is coming to an end, they have decided to stop this service once and for all.
Cognizant Chief Financial Officer, Karen McLoughlin has informed that, although this is a tough call that will affect the company’s financial prospects, they will find the best path for their affected clients.
Meanwhile, the company has decided to train around 5000 of the affected employees and redeploy them in other segments like cloud, internet and digital platforms.
The company has observed a 1.9 percent ($1.49 billion) rise in revenue from its financial services and a dip in revenue from its healthcare services, which is 1.2 percent ($1.8 billion). It is said that these two segments are the ones which make up more than half of the company’s total revenue.
Chief Executive Officer Brian Humphries has said that the company is looking for a whole restructuring process.
He has also said that, as the company comprises 2, 89,900 employees, it is looking for more investments. For this, the company has decided to appoint 500 revenue generating staff in the coming days.
Meanwhile, some reports have suggested that, by the next year end, the company is expected to observe a lay-off of around 10000 to 12000 jobs.
A similar cost cutting exercise was observed in August this year.
