Cognizant raises full-year revenue forecast, reports 4% rise in net profit in September quarter. To cut nearly 12,000 jobs to trim costs. Set to exit the content moderation business.
Global IT services company, Cognizant Technology today reported 4.19% YoY rise in net profit at $497mn vs $477mn profit last year.
We Would Have to Let You Go: In the post-earnings conference call, the company forecasted full-year 2019 revenue growth between 4.6% and 4.9% from an earlier outlook of growth between 3.9% and 4.9%. To this effect, and to offset a decline in spending by financial companies on its IT services, Cognizant said that it would be laying off 10,000-12,000 mid-to-senior employees from their current roles. It also said that it would reskill and redeploy about 5000 of those impacted by this move. Reuters
The number of employees as of September 30, 2019 stood at approximately 289,900. ET ITeS
Cognizant is also set to exit some of its content moderation business, including that for Facebook, resulting in about 6,000 job cuts. The news comes months after a report by The Verge revealed that moderators at the company's Phoenix site were being diagnosed with post-traumatic stress syndrome after being subjected to a daily onslaught of graphic and disturbing images.
Cognizant had hired thousands of moderators around the world to remove hate speech, terrorism, and other inappropriate content from platforms including Facebook, Google, and Twitter. The Verge
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