Cognizant has announced job cuts
IT company Cognizant has announced plans to lay off 3,500 employees, which constitutes approximately 1% of its workforce, as it anticipates revenue to slow down in 2023. The company will also reduce its real estate costs by removing 80,000 seats and 11 million square feet in large Indian cities.
Cognizant has launched a program called ‘NextGen,’ aimed at simplifying its operating model, consolidating and realigning office space, and optimizing corporate functions for a post-pandemic hybrid work environment.
The company intends to operate with fewer layers to enhance agility and enable quicker decision-making. The savings from the program are expected to fund continued investments in people, revenue growth opportunities, and modern office spaces.
To summarize, IT major Cognizant plans to lay off around 1% of its workforce, or approximately 3,500 employees, due to slowing revenues 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 under its ‘NextGen’ program.
The program aims to simplify the company’s operating model, optimize corporate functions, and realign office space to reflect the post-pandemic hybrid work environment. Cognizant reported a 3% YoY rise in net profit to $580 million in Q1 FY23, with revenue declining 0.3% YoY to $4.8 billion. The company expects to incur costs of approximately $400 million under the ‘NextGen’ program, with $350 million anticipated in 2023 and $50 million in 2024.
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