Cognizant To Cut Off 7,000 Jobs Over Next Few Quarters 

One of the most renowned I-T company, Cognizant Technology Solution Corporation on Thursday gave a shocking news to its employees announcing to cut as many as 7,000 jobs in the next few quarters and exit its content moderation business, impacting around 6,000 jobs. 

Cognizant is doing this to exit the content moderation business after honouring the remainder of its contract. This decision was taken after a few investigations that raised questions about the employees working environment and the impact of the work on their mental health.

According to Economic Times report, during a post-earnings call, Cognizant also admitted that the exit from the content moderation business will hurt its financial performance. Meanwhile, Cognizant's Chief Financial Officer Karen McLoughlin during a conference call stated that it will "comply with contractual obligations and determine the best path forward with affected clients".

Cognizant, is currently planning to cut approximately 7,000 additional jobs-mid-senior level employees-in its other two units to invest in other segments. The company also plans to reskill and redeploy about 5,000 of the total impacted employees.

After this cut off, Cognizant is expected to save between $500 million in 2021 and record restructuring charges worth $150-200 million by the end of next year.

Also, the New Jersey-based company's revenue from financial services rose 1.9 per cent to $1.49 billion while revenue from healthcare services dipped 1.2 per cent to $1.8 billion. It is worth noting that the two segments make up over half of the company's total revenue, Economic Times further reported. 

This is not the first time that Cognizant is looking at cutting jobs. In August this year, the company had announced plans to lay off employees as part of a strategy to cut costs and reduce spending.