Business News: While the discussion of laying off 12000 employees is in full swing in the country’s largest IT company, on the other hand, the global IT company Cognizant Technology Solutions is preparing to give an 80 percent increment to its employees. The most interesting thing in all this is that this US-based company is of Indian origin, which is going to give a huge increment to its employees. Let’s know which employees Cognizant Technology Solutions is going to give this gift to.
When will the increment be implemented?
Global IT company Cognizant Technology Solutions has said that it will give a salary hike to 80% of its eligible employees from November 1. The US-headquartered, Indian-origin company said that its top-performing employees will get salary hikes in high single digits (about 7-9%). Last year, the company had postponed the salary hike for four months and gave a hike of 1% to 5% in August, whereas this year it has to wait till November.
Indian employees will get a Diwali gift
According to the company, this salary hike will be given to employees up to the senior associate level, and its percentage will vary according to the performance of each employee and the country. In India, those who consistently perform well will get the highest increase. This decision is in accordance with the company’s announcement, in which it said that in the second half of 2025, most employees will be given merit-based salary hikes.
IT Salary Hike Amid Layoffs
The salary hike comes at a time when industry leader TCS recently announced layoffs of about 12,000 employees (2% of its workforce) and deferred this year’s salary hike due to uncertain business demand and economic environment. Infosys, India’s second-largest IT company, gave a salary hike in April, but the next hike is yet to be decided. Wipro has also said that it will decide on a salary hike after looking at market demand.
Cognizant’s earnings and employee status
Last month, the company reported a nearly 14% rise in net profit in the April-June quarter and an 8.1% year-on-year revenue jump to $5.25 billion, beating estimates. The company, which has 70% of its employees in India, raised its annual revenue forecast to $20.7 to $21.1 billion, implying growth of 4.7% to 6.7%.
CFO Jatin Dalal said that the company is trying to give salary hikes to most of the employees in the second half of this year. At the beginning of the year, the company also gave its associates the highest bonus in the last three years. Despite the uncertain environment, the company added 7,500 new employees (mostly freshers) in the June quarter, taking the total headcount to 343,800.
CEO Ravi Kumar S said that this quarter is special because the number of employees has increased continuously, which is part of our plan to recruit freshers in India. The company aims to hire 15,000 to 20,000 freshers in 2025.