Cognizant is planning to cut its staff by nearly 13-14K and it is more to do with the current changing market dynamics and the falling IT spending globally. Here are some key facts you must know about the Cognizant layoffs.

· Cognizant is one of Facebook’s key content review contractors and due to the changed rules it will be looking to shut some content moderation business, including those focusing on identifying objectionable content. This is likely to lead to a reduction of about 6,000 jobs in India alone.

· In addition, Cognizant will also cut another 7,000 jobs so as to move its people to more high growth segments like cloud, IOT, analytics etc which is where the growth is coming from. More of its routine business will be automated.

· It needs to be noted that the content moderation business was a major cash cow for Cognizant and that should hurt financial performance next year. Cognizant feels that this task of finding objectionable content was not their core focus and was digressing from their core strength.

This could have implications for the large Indian IT companies like Infosys, TCS, Wipro and HCL Tech as all these companies operate in these areas and also work towards specific goals like increasing automation and reallocating manpower. This could be precursor for other IT companies to also push for quick changes in these areas.