Cognizant Technology Solutions, a US-based tech firm, has offered voluntary retirement scheme (VRS) to its senior management officials in India as part of the company policy to accelerate growth and push for digital technology in the process of trimming the workforce.
The tech firm holds its major India operations in Chennai confirmed it in a media report citing automation and slow growth as the reasons behind the same. However, it is still awaited to see the policy of other tech firms going forward when the IT sector faces its worst time in a decade.
A Cognizant spokesperson was quoted as saying, “There could be at least 1,000 employees who may be eligible for this. The company is offering a voluntary retirement scheme to some senior leaders, which represents a very small part of our total workforce. It is related to our overall company strategy to accelerate our shift to digital and to deliver high-quality and sustainable growth.”
Cognizant has been facing growth issues after riding high for the past 20 years. The company reduced its growth guidance three times in the last financial year. However, the company registered 8.6 per cent revenue growth in 2016 which stood at $13.5 billion compared to $12.42 billion in 2015. The company estimates its revenue to somewhere around $14.5 billion in 2017.
The VRS offer comes as a part of serving its clientele better through digital media and hiring prospects will continue for young and skilled employees for sustainable digital growth.
BW Reporters
The author is a correspondent with BW Businessworld with keen interest in HR and employee welfare.
