IT giant slashes thousands of jobs despite Q2 profits

Thousands of professionals lost their jobs during the COVID-19 pandemic and it seems the ripple effects are still continuing as layoffs continue to plague the industry. A prominent IT and professional services firm Cognizant Technology Solutions recently terminated the employment of over 8,000 staff members, according to a report. The IT firm recently disclosed its financial results for the second quarter (April-June 2024).  

Cognizant, a US-based company with a predominantly Indian workforce, reported a net profit of $566 million for the quarter ending June 2024. The software company has recorded a 22.2 percent increase from the previous year.

While aiming to boost future profits, the company has been steadily reducing its workforce. In the April-June quarter alone, Cognizant appears to have laid off over 8,100 employees, surpassing the number of layoffs in Q1 of 2024.

The company's current total workforce stands at approximately 3,36,300. Since the start of 2024, several major corporations have downsized their staff. Interestingly, companies like TCS, Wipro and Tech Mahindra have seen slight increases in their employee numbers. In contrast, HCL and Infosys have experienced reductions in their workforce.