US-based IT major Cognizant has reportedly fired over 200 employees this year in a bid to bring in young talent to the company. The employees were let go with three to four months' severance pay.
This move was done in a new and changing environment where the younger generation in the company is deemed more important since they are more adaptable to change than the older ones.
Recently, Tech Mahindra had lowered the retirement age for employees. Tata Consultancy Services has also doubled the salary for freshers in order to attract the younger generation.
Last year, Cognizant had offered a 'voluntary separation scheme' to around 400 senior employees, reports The Times of India.
When asked to comment, the company told TOI, "As part of our ongoing workforce management strategy, we ensure we have the right employee skill sets necessary to meet client needs and achieve our business goals. This process has resulted in changes, including some employees transitioning out of the company. We continue to enhance our capabilities and hire for roles across all our practice areas in the company. Details of severance or any other conditions of employment are confidential."
Some of the employees, who were let go, said that they were forced to sign a form which stated that they were leaving on a voluntary basis and that they would not press charges against the company or the management.
In an earlier report, an unnamed source was quoted by TOI saying, "At the end of the day, business-and-skill mix required has changed dramatically. Companies have engaged their employees in long learning cycles — in some cases, at their own expense. Firms have little control and are driven by clients' demand and are actively changing the skill mix. With customers wanting to reap higher productivity gains, the project pyramid is getting squeezed, forcing companies to rationalise costs and embark on redundancy plans without the noise."
