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Global IT services giant Cognizant Technology Solutions has deferred its annual salary hikes this year by four months. It now plans to roll them out to eligible employees from August 1, two people confirmed to ET.
Last year, the Nasdaq-listed firm had given hikes to employees in April.
Confirming the development, Cognizant said, “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.”
On emailed queries, the IT major further said that the majority of its associates have seen four merit increases within three years, with the last cycle being April 1, 2023.
“The company has also just rewarded annual bonuses to eligible associates globally. This continuity underscores our dedication to consistently acknowledge the contributions of our talented associates,” it added.
In February, Cognizant also started calling its India employees to work from office three times in a week.
The Teaneck-headquartered company has over 347,700 employees globally, of which around 254,000 are based in India.
The hike delay comes at a time when the software services exporters and technology firms are witnessing subdued demand with clients tightening their budgets due to uncertain and strained macroeconomic situation.
For the fourth quarter of FY23 ending December, Cognizant’s revenue declined 1.7% year-on-year (YoY) to $4.76 billion, a likely eight-quarter low, owing to continued weakness in demand.
It’s profit, however, rose 7% YoY to $558 million.
For the full year 2023, Cognizant posted a 0.4% YoY decline in revenue to $19.4 billion. In constant currency terms, it was 0.3% lower.
In FY24, the first quarter revenue is expected to be $4.68 – $4.76 billion, a decline of 2.7% to 1.2%, or a decline of 3.0% to 1.5% in constant currency, Cognizant said.
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