Cognizant, a major IT services and consulting company, is now investing in AI-fueled tools after announcing that it will reduce its workforce by 3500 members or one percent of its workforce. CEO Ravi Kumar, who has succeeded Brian Humphries, confirms that Cognizant will implement a new form of technology called “generative AI” that can help work in various fields, such as consulting, design, engineering, and operations. This technology is projected to double the productivity of the employees.
Furthermore, Cognizant is in the process of creating a “AI accelerator,” which is a special environment designed to explore the potential of AI and build prototypes quickly. This technology has been one of the most discussed topics these days, and, as company CEO Ravi Kumar said during an earnings call, it carries the potential to revolutionize the IT services industry and increase employees’ efficiency.
Kumar shared that the company was preparing to layoff employees as part of a two-year rejig program. He stated that the cuts will not only be in the non-billable overhead department but also in the corporate function. Moreover, it was also confirmed that Cognizant’s real estate costs will decrease since only a small percentage of the workforce works in physical offices, and a majority of workers are located in tier II and III cities.
With the aim of making employed people in these cities socially aware, the 3500 people will be laid off, and Cognizant is expected to invest $200 million to cover the costs related to this move.
For a better understanding, Cognizant is a major provider of digital services. It provides digital engineering services, financial services, AI and ML, enterprise software, and other services. The company has more than 300,000 employees across the globe, operational offices in 50 countries, and offers IT services and digital business solutions to Fortune 500 companies.
Ravi Kumar is the president of Cognizant, appointed in 2021. He was previously the Global Chief Operating Officer at the company. He was in charge of the research and development of strategic initiatives to spur growth and ensure that Cognizant is well-positioned to meet customers’ demands. He has been credited with turning around the company in a short period of time and making it more competitive in the market.
