VOYA Financial dropped a bomb on employees on Tuesday announcing Layoffs over the next 9 months for 35 % of its IT employees and moved another 10 -15 % to it's new partner Cognizant.
The company is quite profitable, but wants a bigger piece of the pie. By teaming with Cognizant they can hold them financial liable for the system crashes that have been plaguing the company since it under staffed the Server support teams and dev teams to keep up with the ever changing world. Also the acquisition of CITISTREET was supposed to simply things, but stubborn leadership did not embrace the new technologies quickly enough and created too many independent systems to maintain. So ulitmately the crashes will continue, but VOYA is looking to bill Cognizant for the failures and make their profits that way, it was a sick enoguh idea to make CIO Gary Baxter resign.
Why not a press release ? 1) Trump might not be thrilled about the loss of US jobs. 2) Contracts might be threatened if companies knew that VOYA was no longer a US only company.
Downside: Well for the product most of the layoffs were the top employees with exceptions to minorities, this ensured the biggest financial savings, but ultimately the product will fail. It's been sliding since the first day the word Outsource was ever mentioned there.