Cognizant Warns Employees Against Layoff Risk For Defying Return-to-Office Order: Report

In a memorandum issued in February, Cognizant CEO Ravi Kumar S stated that all associates based in India are expected to adhere to an in-office presence averaging three days per week

The IT giant Cognizant, listed on Nasdaq, has reportedly issued a warning to its employees, indicating that continued defiance of the directive to return to the office premises could result in termination from the job, according to a report by LiveMint.

Reportedly, in a letter dated April 15 addressed to the employees, Cognizant urged those who have yet to resume in-office work despite prior warnings to take responsibility and review previous communications from business leaders regarding expectations for on-site attendance.

"Please note that failure to adhere to the directions will amount to serious misconduct as per company policies, and accordingly appropriate disciplinary action will be initiated against you, which may lead up to termination," reads the letter to an employee, as per the report.

In February, as reported by the news agency Reuters, the IT firm communicated to its employees based in India a directive to transition to working from the office for a duration of three days per week.

In a memorandum issued in February, Cognizant CEO Ravi Kumar S stated that all associates based in India are expected to adhere to an in-office presence averaging three days per week or as stipulated by their respective team leaders. However, the memorandum did not specify the effective date for this transition.

According to its annual report, Cognizant's largest employee base comprises approximately 254,000 out of a total workforce of 347,700, indicating that a significant portion of its workforce is stationed in India.

In contrast, the company's Indian counterparts, including Tata Consultancy Services (TCS), Infosys, and Wipro, initiated a return-to-office mandate for employees in 2023. TCS implemented a schedule requiring employees to work in the office five days a week.

On a trailing 12-month basis, Cognizant's attrition rate experienced a notable decline, decreasing by 10 percentage points to 13.1 per cent. Similarly, the utilisation rate saw a modest increase, rising by 1 percentage point to 82 per cent for the quarter ending March 31. Cognizant Technology Solutions (CTS) reported a year-on-year (YoY) decline in revenue, with a decrease of 1.1 per cent to $4.8 billion.