In the next few years, Cognizant will eliminate as many as 7,000 jobs and exit its content management business, impacting another 6,000 workers as it begins a strategic overhaul to cut jobs.
The Teaneck, New Jersey based business said it would withdraw 10,000-12,000 mid-to-senior employees from their current roles in a post-earnings conference call with analysts and reskill and redeploy about 5,000 of those affected.
“The gross reduction is expected to lead to a net reduction of approximately 5,000 to 7,000 roles (about 2% of the company’s total population),” company executives said.
Cognizant also exits the content management business to consumers including Facebook, a giant in social media. The business has come under significant criticism for moderators’ working climate and the effects of the job on their mental health. “Exiting this area will impact an additional approximately 6,000 roles worldwide, though the company intends to work with its partners to explore ways to transition the roles to alternative vendors, thereby reducing the impact to associates,” company executives said.
The departure will also have an effect on sales in the Telecommunications, Media and Technology division of the business, with the job ramp-down expected to take place in the next one to two years.