7000 Employees Left Cognizant In Last 365 Days: Hiring Reduced


Sheetal Bhalerao

Sheetal Bhalerao

May 04, 2024


It appears that the Information technology company Cognizant Technology Solutions’ is not much behind in following the trends of cutting headcount.

7000 Employees Left Cognizant In Last 365 Days: Hiring Reduced

Huge Decline In Cognizant’s Headcount in Q1

In a recent development, Indian IT major, Cognizant Technology headcount has declined sequentially year-on-year (YoY) during the two quarters in January-March.

There is this change which IT companies are following where they have stopped backfilling positions left vacant due to attrition in the recent past.

This seems to be affected by weak demand and also the higher rates of utilization.

As we know that Cognizant follows the calendar year, so its headcount has decreased by 3,300 sequentially and 7,100 YoY, ending with 344,400 employees in the first quarter of 2024. 

After declaration of the results, the chief executive officer Ravi Kumar S said, “We have some capacity to continue to take care of our short-term needs. And as growth comes back in a more and more robust way, we will start to improve headcount,” in a media interaction.

Increase In Utilization Rate

Its peers in India including Tata Consultancy Services, Infosys, HCL Technologies, Wipro, and Tech Mahindra all together lost 69,167 employees in FY24 concerning the uncertain environment for demands.

In the case of other rivals such as Accenture, its headcount declined by 723 to 742,318 during the last reported quarter.

It appears that a substantial portion of the workforce of Nasdaq-listed information technology companies operates out of India.

So, their results matter as they serve as an indicator of the broader trends within the over 5 million-strong Indian IT sector.

In the meantime, Cognizant’s attrition rate reduced by 10 percentage points to 13.1 percent on a trailing 12-month basis. 

Contrary to this, there is an increase in its utilization rate  by 1 percentage point to 82 percent for the quarter ended March 31.

According to Kumar, Cognizant would first increase its utilization rate by 1-2 percentage points and then start hiring. 

Besides this, Additionally, the Teaneck-based company’s  headcount has not fallen in comparison with some of its peers.

So, the company’s metric was net positive in the past two quarters.


Sheetal Bhalerao
Sheetal Bhalerao
  • 680 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online