wo well-known multinational corporations are laying off people in mid-senior level positions. 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.
Economic Times reports on the two MNCs’ plans to layoff workforce. According to one ET report, Infosys will remove 10 per cent of the workforce, which comes to around 2,200 people, in Job Level 6 (JL6) i.e senior managers. The company further plans to lay off 2-5 per cent workforce in associate (JL3 and below) and middle (JL4 and 5) levels. This translates to around 4,000 to 10,000 people.
Infosys has a total of 30,092 employees in the JL6, JL7 and JL8 bands, around 86,558 employees in the associate bands (JL3 and below) and 1.1 lakh employees in the mid level (JL4 and JL5).
Additionally, there are 971 title holder i.e senior executives such as vice presidents, senior vice president and executive vice president out of which 2-5 per cent or around 50 executive will be asked to leave.
Infosys maintains that the layoffs are not indicative of mass trimmining. “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,” the company told TOI.
Cognizant to cut 7,000 jobs, will exit content moderation
Cognizant is also laying off around 7,000 employees over the next few quarters. The company further plans to exit content moderation business which may impact another 6,000 employees.
The report by ET says Cognizant is actually planning to remove 10,000 to 12,000 mid-senior employees from their jobs, but plans to redeploy 5,000 of those impacted, bringing the gross reduction between 5,000 to 7,000. This amounts to 2 per cent of the total population in Cognizant, company executives told ET.
In addition to the layoffs, Cognizant is also planning to exit its content moderation business for clients like Facebook. The move comes after the company found itself facing scrutiny for the working conditions of moderators and the impact on their mental health. “Exiting this area will impact an additional approximately 6,000 roles worldwide, a company executive said.