Cognizant The US’ Tech Firm Layoffs 18,000 Employees

Cognizant The US' Tech Firm Layoffs 18,000 Employees

Cognizant, the tech firm of US is planning to layoff 18,000 employees across India, alleged State IT employee unions in Karnataka and Chennai.

Unable to secure projects Cognizant asked these employees to resign. The New Indian Express reported that KITU’s spokesperson told them that they are running a drive telling all Cognizant employees to not give resignations under any pressure from the management.

The spokesperson added, “The mass retrenchments are happening in violation of the labour laws. We will register a complaint with the State Labour Department,” reported The New Indian Express.

“The reports on large scale layoffs are coming from ‘Cognizant’ in the name of ‘effectively managing workforce utilisation’. Thousands of employees all over India are going to be victims of this. Karnataka State IT/ITeS Employees Union (#KITU) strongly condemns this illegal and inhuman decision taken by the management of Cognizant,” according to the KITU statement as reported by The New Indian Express.

The New Indian Express further added that employees wrote to them maintaining their anonymity that Cognizant is asking employees without any secured projects to resign. “They are benching employees for 30-45 days and forcing them to resign blaming them for finding no work,” one of the affected employees said, reported The New Indian Express.

A KITU spokesperson said that as per the Labour Laws, companies that employ more than 100 employees need to obtain approval from the Labour department in order to execute layoffs, wrote The New Indian Express. “Rebranding a layoff by arguing that employees voluntarily resigned when they were, in fact, forced to resign, is also against the law. KITU urges all the affected employees to refuse to resign if asked to do so by the company,” he said.

Due to COVID-19 pandemic, the IT industry suffered a lot globally. Many IT industries laid off their employees to cope up from the pandemic. Many IT employee unions are approaching the state labour departments accusing the companies of violating the labour laws amid the COVID-19 pandemic.


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