 "Cognizant")
Cognizant experienced a reduction in its headcount by 7,600 employees to 347,700 in 2023 compared to the previous year, according to the company's 2023 annual report. The Nasdaq-listed IT and outsourcing firm, which follows a calendar year, reported its total headcount at 347,700, which was 1,100 more at the end of the December quarter (Q4) compared to its previous quarter.
Cognizant also reported a decline in voluntary attrition to 13.8 per cent in 2023 from 25.6 per cent in the previous year. This trend of reduced net hiring is reflective of subdued macroeconomic indicators, ongoing pressure in the banking and financial services sector, prolonged decision-making cycles, and a softness in discretionary spending.
The company witnessed a significant decrease of 4,500 employees in India alone, with nearly 3,000 employees onsite. Its workforce distribution includes about 250,000 employees in India, 40,500 in North America, 16,300 in Continental Europe, 8,500 in the UK, and 28,400 in other locations, according to a report by the Times of India.
The IT firm has emphasised its increasing utilisation of AI-based technologies, including GenAI, in both client offerings and internal operations. However, it acknowledged that advancements in AI may lead to reduced demand for certain services or affect pricing and terms, which may have led to a workforce reduction.
In January, Cognizant acquired Thirdera, a ServiceNow partner, for $430 million, enhancing its ServiceNow expertise. This acquisition adds ServiceNow consultants and expands Cognizant's ServiceNow Business Group, positioning it as a leader in ServiceNow training and certifications. It also expanded its agreement with biopharmaceutical company Takeda, along with several other partnerships and agreements.
Cognizant reported a seven per cent increase in its net profit for the December quarter (Q4) at $558 million, up from $521 million a year ago. The full revenue of the company was $19.4 billion, which declined 0.4 per cent YoY. Cognizant expects its revenue range for 2024 to be between $19 to $19.8 billion, which would be a decline of 1.8 per cent to growth of 2.2 per cent.
