Cognizant Technologies (CTSH) is eliminating roughly 300 executive positions, though the IT consulting and technology outsourcing company has yet to formally announce the pending layoffs, according to Trak.in -- an online publication that covers India's technology, mobile and startup markets.
The Cognizant staff cuts may also hit mid-level positions, though the company is still evaluating so-called "employee separation programs," according to Business Standard.
Cognizant in early May 2019 announced a weaker-than-expected business outlook in early May -- blaming slower growth in the financial services and healthcare markets. Revenue for fiscal year 2019 is expected to grow 2.7 percent to 4.2 percent -- though that's less than a previous target of 6.3 percent to 8.3 percent.
In a May 2 statement, Cognizant CEO Brian Humphries said:
"Cognizant's growth and performance in the quarter leaves room for improvement. While I am encouraged by our client centricity, our employees' winning spirit and our innovation, we are not yet delivering against the market opportunity. We are committed to strengthening our execution to invest in growth and drive shareholder value."
Ironically, that growth strategy now apparently includes layoffs. The company had 281,600 employees in 2018. Roughly 70 percent of those staff members are located in India, according to SeekingAlpha.
IT Outsourcing: Cloud Services Drive Mergers, Acquisitions
The overall global system integrator and IT outsourcing market remains healthy, but India's outsources remain under pressure as businesses increasingly automate through cloud services rather than long-term IT contracts. Major global systems integrators such as Accenture, DXC Technology, Deloitte and others have been acquiring cloud-centric consulting and automation firms to embrace IT consumption trends.
Tech Industry Layoffs: Track all technology industry layoffs by year here.