The announcement has come as part of the company's financial results for the first quarter of 2023 in which its net income was $580m while revenue was $4.81bn
Cognizant plans to cut nearly 3,500 jobs. (Credit: Cognizant Technology Solution/Wikimedia Commons)
Technology services and consulting company Cognizant has revealed its plans to lay off nearly 3,500 employees, which is about 1% of its workforce, as part of the company’s cost-saving programme NextGen.
The announcement has come as part of the company’s financial results for the first quarter of 2023 (Q1 2023).
NextGen has been launched by the company in Q2 2023 as a step towards streamlining the operating model. This includes operating with lesser layers in a bid to boost agility and facilitate faster decision making, said Cognizant.
The initiative also aims at optimising corporate functions and consolidating and realigning office space to fit the post-pandemic hybrid work environment.
According to the firm, the overall workforce at the end of Q1 2023 was 351,500, a decrease of 3,800 from Q4 2022, and an increase of 11,100 from Q1 2022.
Cognizant said that it expects to witness a decline of 0.6%-1.6% in the Q2 2023 revenue to $4.83bn-$4.88bn.
The company reported a net income of $580m for Q1 2023, which is a 3% increase compared to $563m for the same quarter of the previous year.
The diluted earnings per share for the US-based company in the reported quarter were $1.14 compared to $1.07 in Q1 2022.
Cognizant’s revenues in Q1 2023 remained flat at $4.81bn, compared to $4.82bn in Q1 2022.
The full-year 2023 revenue for the company is anticipated to be between $19.2bn- $19.6bn.
Cognizant CEO Ravi Kumar said: “Clients recognise how deeply we understand their businesses and how well positioned we are to create value for them at the intersection of technology and industry use cases.
“Having spent more than three months assessing the business, meeting with over a hundred clients and thousands of employees, I firmly believe Cognizant has a strong foundation for accelerating growth.”