Cognizant (Nasdaq: CTSH), a Software and IT service firm, announced the first quarter of 2021 financial results. While Cognizant Technology Solution announced revenue of $4.4 billion(4.2% increase YoY), the company reported a total Cognizant attrition rate of 21% in Q1 2021. According to Cognizant Q1 2021 results, approximately 13,342 employees left Cognizant in 90 days and during the same period, Cognizant fired over 2224 employees:
13,342 Cognizant employees left Cognizant, and Cognizant fired over 2,224 employees in 90 days
Cognizant Q1 2021 results reported a total of 21% attrition. Out of which 18% of people had voluntary separation where they found another opportunity and left Cognizant.
13,342 Cognizant employees left cognizant for better career opportunity outside of the firm during the first 90 days of 2021. Cognizant fired or terminated 3% of employees—cognizant fired 2224 employees in January, February and March of 2021. According to the SEC filing, all were Junior Staff
Earlier this year, according to the TOI report total of 1.2 lakh employees have left cognizant in the last 2 years.
Why such a high attrition rate in Cognizant
While as a company, Cognizant has seen great results on its branding as Digital Transformation Firm, it is far behind in terms of employees satisfaction. While many criticized Cognizant mass layoff last year, many claimed it’s going through a change for good.
Many employees supported cognizant through discussion forums and said the company is moving towards the Digital transformation firm, which is the golden opportunity for Cognizant and many employees who did not keep themself up-to-date and do repetitive tasks fired.
According to a leading discussion forum, a user mentioned that it was challenging for them to change a project or department. So many changes from top to bottom are making this company’s root shaking.
Another Indian IT Blog reader constantly emphasized that Cognizant and many Indian IT companies are hiring freshers and focussing more on quantity than quality. Due to the Covid-19 pandemic, freshers can not work up to the companies’ expectations and creating challenges.
Attrition Rate of IT firms TCS, Infosys, Wipro
According to a Business Today report, India’s largest software and IT services company Tata Consultancies Services (TCS), has the lowest attrition rate of 7.2 per cent among the top IT companies in India for the quarter ending March 2021
The second-biggest IT firm Infosys reported the attrition rate at 15.2 per cent for the quarter ending March 2021. In contrast, India’sIndia’s Third largest IT company Wipro reported a 12.1 per cent attrition rate.
Cognizant Promotion, Bonus and salary hike
According to the official filing, Cognizant incurred costs to enable employees to work remotely during the COVID-19 pandemic. Cognizant reported cost associated with a one-time bonus to Cognizant employees with the designation of associate and below in India and the Philippines.
Recently IT Firm Cognizant Technology Solutions gave bonus payouts and promotions and a salary hike for the year 2021 for its employees. According to a report, it was above the company’s level and substantially higher than in 2019.
Good Work By Cognizant
Cognizant was praised for many of its initiatives, including Cognizant C3 operation to support India for its Covid-19 crisis.
Cognizant CEO has taken many initiatives to bring the company back on track; Such as Cognizant has put a 220 Crore fund to retent the best talents and employees.
Additionally, Cognizant India Launches a 12 week paid “Career Restart Program” for IT professionals to restart their career after a break; here are the Cognizant Career Restart Program details.
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