This is really a serious concern and needs proper investigation that why 1.2 Lakh Cognizant Employees Resigned in 90 Days?
This is the second-worst quarter in the history of Cognizant as the corporation attrition was 36 percent.
Additionally, Cognizant is considerably outperforming Indian competitors like Infosys (28.4%), Tata Consultancy Services (19.7%), Wipro (23.3%), and HCL Tech (23.8 percent).
However, the corporation has had attrition rates exceeding 30% for the fifth straight quarter.
The firm currently has 341,000 workers working for it worldwide locations. In the last year, about 1.2 lakh employees have left the organization. The attrition (combining Voluntary & Involuntary Attrition) was reported at 36% for the second quarter ending on June 30, 2022.
1.2 Lakh Cognizant Employees Resigned in 90 Days due to Underperformance?
According to a various media source, this has gained attention when a Cognizant board member recommend the board to keep an eye on the company’s poor performance. And perhaps even think about removing the current CEO, Brian Humphries as well.
Cognizant’s present “method of avoiding/not competing” for huge transactions need to address, according to Wedbush Securities. Which is a privately owned investment company located in Los Angeles. Though, at present every IT services provider company is fighting for multi-year, multi-million dollar work from Fortune 500 customers around the world.
According to MD Moshe Katri, “ongoing execution issues” are the reason for the company’s severe relative underperformance in comparison to its competitors in the market. This is still a mystery that Why 1.2 Lakh Cognizant Employees Resigned? This will surely impact the company performance globally, and this company may face worst time in stock market as well.
Problematic trends in Cognizant success.
MD Moshe Katri identified several alarming patterns in Cognizant, including:
The departure of key top people
A difficulty to hire senior staff who had previously worked for technology or growth businesses
The choice to refrain from engaging in significant agreements or negotiations
An inability to properly staff its bench, which would slow revenue growth and probably cause it to lose market share.
The relative growth rates that are much below those of global counterparts (INFY, TCS, Accenture)
Other financials Points
The company announced on July 28 a net profit of $577 million for the second quarter that ended on June 30.
This is an increase of 12.7% over the same time last year.
On an annual basis (YoY), revenue was $4.9 billion, up 9.5%
However, after addition of 900 employees its headcount now rise to 3,41,300.
Tech Mahindra Updates
IT giant company Tech Mahindra has added 6,862 new employees in the quarter. This number is far bigger as compared to other IT company.
Wipro Company current updates.
In the first three months of the current fiscal year, Wipro hired 15,000 new staff.
As of June 30, there were 258,574 people working for it overall.
The attrition rate was 23.3 percent, which is still much higher than the 15.5 percent during the same quarter last year but marginally lower than the 23.8 percent of the preceding quarter.
Tata consultancy Services Updates
TCS company add 14,136 staff in the April to June quarter. And TCS has 6,06,331 employees globally.
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