The company said a majority of its associates have seen four merit increases or hikes within three years– October 2021, October 2022, and April 2023– with the last cycle being April 1, 2023.
The firm saw a reduction in its headcount by 7,600 employees to 347,700 in 2023 compared to the previous year, according to the company’s 2023 annual report.
Nasdaq-listed Cognizant has deferred salary hikes for its employees by four months, the same will be now rolled out from August.
“We are committed to recognizing the hard work and dedication of our associates through annual merit increases and bonuses. As part of this commitment, the merit increases for eligible associates will be awarded this year on August 1,” the firm said in a statement.
The Teaneck-based firm has 347,700 employees worldwide, including 250,000 in India as of 2023. The development comes amid a slowing environment. For the October-December quarter, Cognizant posted a fall of 1.7 percent in revenue to $4.76 billion year-on-year (YoY). Sequentially, revenue decreased by 2.9 percent.
The company said a majority of its associates have seen four merit increases or hikes within three years– October 2021, October 2022, and April 2023– with the last cycle being April 1, 2023.
The firm saw a reduction in its headcount by 7,600 employees to 347,700 in 2023 compared to the previous year, according to the company’s 2023 annual report.
The IT and outsourcing firm, which follows a calendar year, reported its total headcount at 347,700, which was 1,100 more at the end of the December quarter (Q4) compared to its previous quarter. Cognizant also reported a decline in voluntary attrition to 13.8 per cent in 2023 from 25.6 per cent in the previous year. This trend of reduced net hiring is reflective of subdued macroeconomic indicators, ongoing pressure in the banking and financial services sector, prolonged decision-making cycles, and a softness in discretionary spending.
