Job cuts: Cognizant headcount reduced by 10,500 employees in Q2

As global software major Cognizant implements a programme to improve cost structure amid COVID-19 and optimises its team, the headcount of the company reduced by 10,500 in the second quarter of this year as compared to the previous quarter.

As of June 30, the total headcount of the company stood at 2,81,200, from 2,91,700 employees on March 31.

The voluntary attrition in the company declined to 10.5 per cent in Q2 of this year, revealed Cognizant CEO Brian Humphries during an earnings call with investors on Wednesday.

Humphries said that the company continues to deploy "much more of a performance orientation in the company, which means that we are now removing the underperformers on an annual basis."

Cognizant also announced that Karen McLoughlin has decided to retire from the company after more than eight years as Chief Financial Officer and a successful career in the company spanning almost 17 years.

Jan Siegmund will serve as the new CFO of the company, effective September 1.

The Cognizant CEO also said that the company was looking to hire a new Managing Director for India who will represent its 200,000 employees in the country.

In the second quarter of 2020, Cognizant reported revenue of $4 billion, down 3.4 per cent as compared to the year ago period.

The company said revenue across its business segments was negatively impacted by the COVID-19 pandemic and a ransomware attack, primarily in the month of April.