Mumbai, April 19: At a time when companies are laying off thousands of employees in a bid to cut costs, IT major Cognizant has reportedly rewarded its workforce. Recently, Cognizant CEO Ravi Kumar announced a salary hike for over 3 lakh employees of the company. As per reports, the salary of more than 3,00,000 employees was hiked recently amid the mass layoff season. Reportedly, the employees at Cognizant received a salary hike six months earlier in the year.

Interestingly, the development comes days after Rebecca Schmitt, Cognizant's chief people officer resigned from office. Schmitt is likely to finish her term and leave the IT giant by May 5, reports Financial Express. The salary hike for Cognizant employees also comes a day after TCS announced a salary hike for its employees. TCS is likely to increase the pay of top-performing employees by 12 to 15 percent while also planning to raise the base salaries of fresh campus recruits. Disney Layoffs 2023: Entertainment Giant Planning Another Round of Sackings, To Eliminate Thousands of Jobs This Month, Say Reports.

Cognizant Announces Salary Hike for Over 3 Lakh Employees

In an internal note to Cognizant employees CEO Kumar said, "This week, the vast majority of you who are in levels up to Associate Director will receive your 2023 merit pay eLetters. Keep in mind that we advanced this merit increase to be six months earlier in the year, following year-end performance reviews. This means many of you are seeing your third merit increase in 18 months."

As per the internal note, the appraisal is the third one for many Cognizant employees in the last 1.6 years. In the internal note, Kumar also noted the contribution of the employees saying that the company has significantly invested in compensation knowing how valuable the associates are to Cognizant's success.

Meanwhile, Aditya Mishra, MD and CEO of CIEL HR said that generally companies offer these types of generosity to their employees when they want to reduce attrition. "Attrition that was high in the Indian IT sector is gradually stabilising," he said.

(The above story first appeared on LatestLY on Apr 19, 2023 10:04 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).