"In 2016, we missed our original goals and our variable payout is reflective of that", a Cognizant spokesperson said in an emailed response to TOI.
"Businesses must realize that machine learning is primarily created to help employees get better at what they do, and not as a tool to replace people", says, Aan Chauhan, CTO at Cognizant.
In 2015, the company's lay-off was 1%, while the layoffs were about 1-2% in 2016 but this year the number is expected to shot up to 2.3%, reported Times of India.
Meanwhile, media reports have suggested that the company may fire as many as 10,000 employees, specifying that this is part of their normal appraisal process.
As on December 2016 quarter, the USA based company's employees globally stood at around 260,000, with over 75 percent of them in India, as experts believe the company struggles to survive in an IT world that's fast moving towards the digital space. In any given year, the numbers may bounce a percentage here or there, but this is part of our standard practice. Automation, once again, is being blamed behind the mass layoffs as it renders many lower-end jobs redundant. This is, however, the first time that more than 2% of the workforce has been laid off. Automation in the industry triggered termination across various divisions in the company.
The company is also investing extensively in training and re-skilling its team, and in substantially expanding its local workforces in the United States and other local markets around the world where it operates.
During an earnings call, company's chief, Francisco D'Souza said, "As agile development and the pervasive influence of technology increases, the value of co-location and a consultative approach also goes up". Founded as a in-house unit, Cognizant now produced annual revenue of $14 Million.
For India, the challenge is job creation than job cuts.