IT services and consulting firm Cognizant may let go of 3,500 employees. The move would be part of its project to simplify operations and organise office space.
About the costs related to the programme, Cognizant said, “This consists of approximately $200 million of employee severance and other costs primarily related to non-billable and corporate personnel, which we expect to mostly incur in 2023, and approximately $200 million of costs related to the consolidation of office space, with approximately $150 million in 2023 and $50 million in 2024.”
Cognizant added that it expected 3,500 employees to be impacted as a result.
The company’s total headcount at the end of Q1 2023 was 351,500, after a decrease of 3,800 from Q4 2022 and an increase of 11,100 from Q1 2022.
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Cognizant said it expected to see a slight decline in its second quarter revenue. Its revenue of $4.8 billion declined 0.3% year-over-year.