Technology services and consulting company Cognizant said on Thursday that it is going to lay off around 3,500 employees that’s approximately 1% of total workforce.
Cognizant also said that it will slash spending on office space by up to $100 million by 2025 in comparison to 2022.
Despite the company reporting a 3% increase in net profit year-on-year, the company’s chief executive officer Ravi Kumar on a call with analysts after Cognizant released its first quarter 2023 financial results Cognizant was “carefully monitoring what remains an uncertain macroeconomic environment and with its potential for shifts in client priorities”.
The company’s cost-cutting measures are a part of its new initiative called the “NextGen programme” where it aims to simplify its operating model, optimise corporate functions, and consolidate its office space to reflect the post-pandemic hybrid work environment.