Cognizant fired over 200 seniors to invest in the younger generation

BENGALURU: Cognizant Technology Solutions (CTS) has reportedly fired over 200 employees.

The rationale behind trimming of senior-level executives is to create room for younger generation since they are more adjusted with the current technology environment than the older ones.

Recently, Tech Mahindra had lowered the retirement age for employees from 58 years to 55 years.

In order to attract the younger generation, Tata Consultancy Services has also doubled the salary for engineering freshers who have new-age digital skills.

In 2017, Cognizant had offered a ‘voluntary separation scheme’ to around 400 senior employees, reports The Times of India.

When asked to comment, the company told TOI, “As part of our ongoing workforce management strategy, we ensure we have the right employee skill sets necessary to meet client needs and achieve our business goals. This process has resulted in changes, including some employees transitioning out of the company. We continue to enhance our capabilities and hire for roles across all our practice areas in the company. Details of severance or any other conditions of employment are confidential.”

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In an earlier report, an unnamed source was quoted by TOI saying, “At the end of the day, business-and-skill mix required has changed dramatically. Companies have engaged their employees in long learning cycles — in some cases, at their own expense. Firms have little control and are driven by clients’ demand and are actively changing the skill mix. With customers wanting to reap higher productivity gains, the project pyramid is getting squeezed, forcing companies to rationalise costs and embark on redundancy plans without the noise.”