Cognizant is closing its Content Monitor Business. Because of this step, it can affect 13,000 employees in total globally and people who are looking for Cognizant, need to be aware of the situations.
More than 500 employees from the Hyderabad campus will be impacted badly.
Conference Call Decisions
After the earning declaration, a conference is held with the analysts. Cognizant declared would remove 10,000 – 12,000 mid-to-senior employees at their present working.
In terms of percentage, it will affect 2% of the company’s workforce.
Cognizant exits content Moderation Business
In content moderations, employees need to moderate content and remove illegal content from the Internet. So to run the operations for Cognizant, Facebook handover the complete Moderation project to Cognizant.
Facebook had outsourced content moderation to the cognizant and at present, the complete project is given to the Genpact’s Texas facility
Over 15,000 employees were hired to check out the content moderation to check the objectable content on the Facebook platform.
As per the verge report, moderators were found to be working in the bad conditions and in continue can affect their mental health as well.
It can affect other employees
Along with 7000 employees for Content Moderation and 6000 more can be affected by the other departments as well. All these are to sustain the business and to save the potential of the companies’ growth.
Hyderabad Campus will also affect
Even in the Hyderabad campus, there more than 500 employees working for the content moderation job and those 500 employees jobs are at risk and in the worst-case scenario, they can be asked to leave.
Cognizant saves for the Financial stiff.
On one side, the company can save money and another side can affect the overall revenue of the company.
The exit can impact Communications, Media and Technology segment. However, at price cut will be the major priority for the companies overall profit and growth.
After announcing the cost cut, company shares were up 7% in trading.
By firing employees, the company can save up to the rate of $500 million to $550 million by 2021.
The company is constantly focusing on cutting down the workforce and also made changes to senior management to achieve its target of saving $65 million in 2019.
The decline in the Healthcare sector
It is also an extra class that the services from the Healthcare had dropped 1.2% to $1.18 Billion and on the other side, the Financial Service segment rose from 1.9% to $1.49 billion.