May 5, 2023
1 min read

Cognizant braces for massive layoffs

IT giant will also reduce its real estate costs by “eliminating 80,000 seats and 11 million square feet in large cities in India”….reports Asian Lite News

IT major Cognizant on Thursday said it will lay off 3,500 employees, or approximately 1 per cent of its workforce (mainly non-billable), as it sees revenues slowing down in 2023.

The company will also reduce its real estate costs by “eliminating 80,000 seats and 11 million square feet in large cities in India”.

Cognizant has initiated a ‘NextGen’ programme aimed at simplifying its operating model, optimising corporate functions and consolidating and realigning office space to reflect the post-pandemic hybrid work environment.

“We expect the personnel-related actions of this programme to impact approximately 3,500 employees or approximately 1 per cent of our workforce,” the company said in a statement.

“Our drive for simplification will include operating with fewer layers in an effort to enhance agility and enable faster decision-making. The company expects savings generated by the program to help fund continued investments in people, revenue growth opportunities, and the modernisation of office space,” the company added.

The total employee headcount at the end of the first quarter was 3,51,500, a decrease of 3,800 from the previous quarter 2022 and an increase of 11,100 from Q1 2022, according to the company.

Cognizant reported a 3 per cent (year-on-year) rise in its net profit to $580 million in the March quarter of FY23.

The company reported revenue of $4.8 billion, which declined 0.3 per cent year-over-year, in Q1 2023.

“Our accelerated bookings growth in the quarter, which included several large deals and a healthy mix of new and expansion work, reflects the strengths of our services, our brand, and the longstanding relationships we have with our clients. I am also encouraged by the continuing reduction in our voluntary attrition,” said Ravi Kumar.

Under the ‘NextGen’ programme, Cognizant expects to record costs of approximately $400 million with approximately $350 million of such costs anticipated in 2023 and approximately $50 million in 2024.

ALSO READ: Good news for startups amid funding winter

Previous Story

Urban waterways in spotlight at global seminar

Next Story

Samsung sets eyes on 2X growth in TV biz in India

Latest from Business

PM Modi: India poised to lead next tech wave

PM Modi underscored that the country is poised to lead the next wave of digital transformation in 5G…reports Asian Lite News Prime Minister Narendra Modi on Wednesday hailed India’s progress in expanding

India Hits 100GW Solar

The expansion is not only in scale but also in quality, with significant capacity dedicated to high-efficiency modules. Many manufacturers have adopted vertically integrated operations, enhancing quality, reducing costs, and improving resilience

Jewellery Exports Shine Bright

The GJEPC noted that product diversification has played a major role in sustaining momentum. Lightweight and contemporary designs are gaining traction among younger global consumers, helping Indian jewellers appeal to a wider

China Curbs Hit India’s Electronics Boom

The ICEA noted this results in delays, inefficiencies, and higher costs — alternatives from Japan or Korea cost up to four times more than Chinese machinery. India’s transformation into a global electronics
Go toTop

Don't Miss

India, ASEAN Unite for Retail Payments

The RBI statement said that the platform may be extended

Indian Embassy in Cambodia lauds ASI’s new find

The Indian Embassy in Cambodia said that this collaboration showcases