Cognizant experienced a significant reduction in its workforce during 2024, with a total decrease of 10,700 employees, bringing its global workforce to 336,800. Despite this decline, the company remains optimistic about future growth, with plans to increase hiring in 2025 to support business expansion.
Chief Financial Officer Jatin Dalal confirmed this strategy, emphasizing that Cognizant will add headcount based on business needs in the coming year. While the company has faced rising attrition rates, it remains focused on talent retention and acquisition to strengthen its position in the IT services market.
Cognizant to Lay Off 10,700 Employees
| Category | Details |
|---|---|
| Workforce Reduction in 2024 | 10,700 employees |
| Total Workforce After Reduction | 336,800 employees |
| Quarterly Employee Decline | 3,300 workers |
| Hiring Outlook for 2025 | Expected workforce growth |
| Attrition Rate (Annualized) | 15.9% |
| Revenue Growth Projection (2025) | 3.5% to 6% in constant currency |
| Comparison with Accenture | Accenture added 24,697 employees while Cognizant reduced staff |
| Market Trends in Indian IT Sector | Top IT firms collectively lost 2,587 employees in Q3 FY25 |
| Official Website | Cognizant |
Employee Reductions and Hiring Plans
Decline in Workforce
Cognizant’s 2024 employee count dropped by 10,700, with a 3,300-worker reduction in the last quarter. The company cited market adjustments and strategic workforce planning as reasons behind these changes.
Despite the staff reduction, Cognizant remains focused on expansion, with new hiring plans for 2025. Jatin Dalal stated that the company will scale up recruitment as business needs dictate, reinforcing its commitment to growth.
Attrition Trends and Hiring Strategies
Cognizant’s attrition rate increased to 15.9%, which is 2.1 percentage points higher than previous figures. Dalal linked this increase to a stronger job market, leading to higher employee movement.
However, he emphasized that Cognizant is still able to attract talent, ensuring the company remains competitive in the evolving IT industry.
Revenue Growth and Market Position
Strong Financial Performance
Cognizant reported better-than-expected revenue in 2024, boosting confidence in its future performance. The company has projected a 3.5% to 6% revenue growth for 2025 in constant currency terms.
The firm is actively investing in talent development and digital transformation initiatives to maintain its competitive edge in the IT services sector.
Comparison with Competitors
Cognizant’s staffing strategy differs from that of Accenture, which added 24,697 employees during the same period. In contrast, Cognizant cut jobs in the first quarter of FY25, reflecting different business approaches within the IT industry.
Additionally, the top five Indian IT firms—TCS, Infosys, HCLTech, Wipro, and Tech Mahindra—reported a combined workforce decline of 2,587 employees in Q3 FY25, primarily due to seasonal business trends.
Leadership’s Optimism and Talent Retention Efforts
Returning Employees Strengthen Workforce
Cognizant CEO Ravi Kumar S highlighted an encouraging trend in employee loyalty, revealing that:
- 13,000 former employees have rejoined Cognizant.
- 10,000 more have expressed interest in returning.
This trend underscores Cognizant’s ability to retain top talent and attract experienced professionals, strengthening its leadership position in the IT industry.
Future Talent Strategy
Cognizant is committed to:
- Expanding hiring efforts in 2025 to meet business demands.
- Enhancing employee engagement to reduce attrition rates.
- Investing in career development programs to boost workforce retention.
The company aims to align talent growth with business objectives, ensuring sustainable expansion in the competitive IT services sector.
Frequently Asked Questions (FAQs)
1. Why did Cognizant reduce its workforce in 2024?
Cognizant’s workforce reduction was part of a strategic business adjustment to align with market demands. The company is now preparing to increase hiring in 2025.
2. Will Cognizant resume hiring in 2025?
Yes, Cognizant plans to add employees based on business growth. The company remains focused on talent acquisition to support expansion.
3. How has Cognizant’s attrition rate changed?
The annual attrition rate rose to 15.9%, an increase of 2.1 percentage points. This reflects a more active job market, leading to higher employee movement.
4. How does Cognizant’s staffing strategy compare to Accenture’s?
While Accenture expanded its workforce by 24,697 employees, Cognizant reduced its headcount during the same period. This highlights different business approaches between the two IT firms.
5. What steps is Cognizant taking to retain employees?
Cognizant is focusing on:
- Rehiring former employees (13,000 have already rejoined).
- Enhancing employee engagement programs.
- Providing growth opportunities to improve retention.
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