Cognizant has announced that it will be laying off 3,500 employees and also reduce office space as part of the cost cutting measures.CEO Ravi Kumar S unveiled the IT major's plans to let go of thousands of employees in order to reduce costs. Not only this, the company will also be giving up 11 million sq feet in office space to bring the cost down further.
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.