Cognizant To Lay Off 3,500 Employees
Mumbai, 4th May 2023: Cognizant, a global technology company, has announced its revenue is expected to decline in 2023, and as a result, the company plans to lay off 3,500 employees. The news was disclosed during the company’s recent earnings call, where Cognizant stated that it expects its revenue to decline in the mid-single digits for 2023.
The company’s CEO, Ravi Kumar S, explained that the decline in revenue is due to the ongoing impacts of the COVID-19 pandemic, including supply chain disruptions and labor shortages. To mitigate the effects of the decline, Cognizant has initiated a cost optimization program that includes reducing its workforce.
The job cuts will affect employees across all of the company’s geographies and business units. However, the company will offer severance benefits and outplacement support to impacted employees.
According to company officials, it will affect approximately 1% of Cognizant’s workforce related to corporate non-billable functions.
Cognizant’s CEO emphasized that the company remains committed to investing in its employees and will continue to hire and train talent in critical areas of the business. He also stated that the company will continue to focus on its digital transformation strategy, which has been a key driver of its growth in recent years.
In addition to the job cuts, Cognizant also plans to invest in strategic acquisitions and partnerships to drive growth and improve its capabilities in key areas, such as cloud computing, data analytics, and artificial intelligence. The company aims to capitalize on the growing demand for digital solutions as businesses around the world continue to embrace digital transformation.
