Cognizant to lay off 3,500 employees to save costs

In response to the projected revenue decline in 2023, US-based software exporter Cognizant has announced that it will be laying off 3,500 employees and also reduce office space.

The company has also estimated that its revenues are expected to decline in 2023 as a result of the current distress in the industry and economic downturn as the majority of its revenues come from the US.

These were among the measures unveiled by newly appointed CEO Ravi Kumar S, who faces an uphill task in reviving the Nasdaq-listed IT major, which competes with the likes of Accenture, TCS and Infosys. While the company is listed in the US, a majority of its operations are based in India.

Cognizant has issued revenue projections of $19.2 - $19.6 billion for the entire year, resulting in a -1.2% to 0.8% decrease in reported terms or -1% to 1% growth in constant currency. In the second quarter, the company anticipates a revenue range of $4.83 - $4.88 billion, indicating a -1.6% to -0.6% decline or a decline of 1% to flat in constant currency.