Cognizant Layoffs 2019: Targeted Job Cuts In October?
Cognizant Technology Solutions may have layoffs sometime in October 2019, according to The Economic Times. CEO Brian Humphries provided clues about the cuts during a recent investor event in New York, the report says.
Chatter about some potential Cognizant layoffs first surfaced in May 2019. The company had 288,200 employees as of June 2019, SeekingAlpha reports.
Despite the staff cut chatter, Cognizant’s business has been performing reasonably well — especially amid the global 2000 shift toward cloud, digital and managed services.
Cognizant Revenues and Evolution
Cognizant’s revenue was $4.41 billion for its second quarter of fiscal 2019 , up 3.4 percent from the corresponding quarter in 2018. Also, net income was $509 million compared to $456 million in the year-ago quarter.
In a July 31 financial statement, Cognizant CFO Karen McLoughlin hinted that the company’s cost structure was set to evolve. At the time McLoughlin said:
“Second quarter results were in-line with our guidance and position us to achieve our full-year outlook. We are implementing actions in the second half of the year that we expect will lower our existing cost structure and allow for greater investment in growth, talent, and digital solutions. Using our strong balance sheet we returned over $1.1 billion to shareholders in the second quarter.”
Cognizant Vertical Markets
Even ahead of those changes, the company was showing growth progress on multiple fronts. Dig into those Q2 results and you’ll find:
- Communications, Media and Technology revenue grew 12.2% year-over-year.
- Products and Resources revenue grew 10.4% year-over-year.
- Healthcare revenue declined 1.9% year-over-year.
- Financial Services revenue grew 0.3% year-over-year.
We’ll be watching to see whether Cognizant makes headcount changes in those specific vertical markets.