Cognizant is shedding 3,500 employees to simplify operations

Cognizant, a leading IT and consulting company, has announced plans to lay off approximately 3,500 employees as part of its NextGen program, which aims to simplify operations and optimize corporate functions. This move follows similar recent layoffs by Accenture, affecting around 19,000 of its employees. Cognizant announced strong financial results for Q1 2023, earning $4.8 billion, and expects Q2 revenue to be between $4.83 and $4.88 billion. Despite these results, the company is taking steps to streamline its operations and cut costs in a highly competitive market.

The personnel-related actions included in Cognizant's NextGen program, which includes layoffs, are expected to impact approximately 1% of the company's workforce. While the layoffs may cause short-term disruption, Cognizant has stated that it will work with affected employees to provide support and assistance during the transition. The IT and consulting industry is experiencing significant disruption, and companies must take proactive steps to remain competitive. Cognizant's NextGen program is a necessary measure to modernize operations and ensure long-term viability and success.