Press Release: On Cognizant’s 2019 Q3 results and announcement of unjustified retrenchment of 7000 employees

Press Release: On Cognizant’s 2019 Q3 results and announcement of unjustified retrenchment of 7000 employees

Through the news media, we have learned that one of the Fortune 500 companies, Cognizant, Headquartered in the U.S., has announced a slew of measures as part of its restructuring initiative. With the closing down of Content Moderation business amongst others 12000 employees are expected to be affected globally. Since India accounts for a large part of the employee strength, the impact is expected to be significant. Out of 12000 employees around 5000 employees are expected to be reskilled and retained, others are expected to be retrenched.

We have also learned from the Cognizant’s official Q3 2019 fact sheet, that the company has earned 497 million USD as net income and 4.25 billion USD as revenue in this quarter with operating margin at 17.3%. Q3 results financial indicators shows stability and growth for the company.

UNITE sees this proposed act of mass retrenchment of its employees, despite a strong quarter result, as a motive for profit-maximization ignoring the life of its employees and their family.

Cognizant Q3 report also has a mention on “2020 Fit for Growth Plan”, where they have allocated approx. 200 million USD(almost half of a quarter’s net income) for restructuring its cost structure, which includes severance packages. The plan is expected to yield approx. 550 million USD in annual revenue saving. UNITE opposes the “2020 Fit for Growth Plan” of the management for profit-maximization and demands the fund to be directed towards reskilling and providing health benefits for the 12000 employees.

UNITE requests employees of Cognizant and the general public to look in detail the closing of Cognizant’s Content Moderation business. In June this year it was reported by the media that Keith Utley, a 42 year old employee of Cognizant had died at work. He was part of a team that oversaw Facebook’s Content Moderation. Former content moderators had revealed terrible working conditions, unreasonable targets and long work hours to be common place in the business.

UNITE calls upon the employees of Cognizant to take note of HCL, Pittsburgh, employees forming an union to fight for their job security, better working conditions and better financial compensation. The HCL employees were employed for Google’s Content Moderation.

Since the impact is expected to be severe here in India as well, UNITE calls upon the employees to unite as unions and fight for our own and our colleagues well being.

In the advent of implementing AI/ML as part of World Economic Forum’s Fourth Industrial Revolution vision, where the low end IT & ITES jobs are getting automated, it is need of the hour to UNITE and protect jobs through collective bargaining.

UNITE invites the Cognizant Technology Solutions employees to join UNITE and practice trade unionism to win their rights.

Alagunambi Welkin
General Secretary
+91 7358061136

Bharanidharan
President
+91 9750358370