Cognizant has laid off about 20,000 more employees in the past, and they recently laid off another 3,500 this week, bringing the total number of layoffs for the year to 23,500. Following the layoffs of these employees, word emerged that they would be leaving the office and closing offices in certain locations. Recently, Cognizant’s CEO confirmed that the company will invest in artificial intelligence. The news comes after Cognizant announced plans to cut 3,500 jobs. Is Cognizant replacing humans with artificial intelligence?
The ruthless CEO of Cognizant is very happy after firing so many innocent employees because he thinks the company will save a lot of money. The CEO is not thinking about how those poor innocent employees and their families will survive. In the many families where some employees are the sole breadwinners, these families are now suffering because of the CEO’s job.
Yet the CEO gets more than Rs 60 crore from the company while the employees struggle to maintain a decent middle class lifestyle.
Cognizant is Mindspace REIT’s anchor tenant behind Accenture, accounting for 4% of its total contracted rents.
Vinod Rohira, chief executive officer of Mindspace REIT, said such decisions by big tech companies are part of their business strategy during the recession and when business recovers, they will quickly ramp up leasing demand. He added that the firm is not concerned about this churn, instead focusing on building quality assets and monitoring mark-to-market opportunities.
So far, Cognizant has not received any indication of an office space being vacated with them, Rohira said. However, if any such situation arises, they are ready as a third party service provider with minimal office requirements and are always looking for space.
A slowing global economy, high inflation and a brewing crisis between U.S. and European banks have led to a standstill in capital spending by large global powers and innovation hubs. However, layoffs by third-party service providers, especially at fCognizant and the lavish lifestyle of the CEO spelled disaster for the company | Cognizant went bankrupt as layoff decisions backfired. The financial services industry saw additional demand for service seats, these players in The past few quarters have taken up a lot of space.
Cognizant
Cognizant
Demand is also coming from companies working on the cutting edge of 5G and related equipment, Rohira said. While there are still no requests for proposals for larger spaces and are not expected for the next 3-4 quarters, there is demand from those seeking 50,000-150,000 sq. ft. of space.
With more than 46% of Mindspace REIT’s tenants coming from the tech sector, the global economic slowdown has had an impact, with sublease spreads slipping to 26.3% in FY23 from 31% a year ago. However, committed occupancy also rose 470 bps YoY to 89%.
Mindspace REIT reported a net operating income of Rs 1,710 crore for FY23, up 13.2% YoY, while revenue rose 16.6% to Rs 2,068.5 crore. Issuance rose 3.8% year-on-year to Rs 19.10 per unit. It added more than 30 tenants, while in-place rents rose 5.7% year-on-year to Rs 65.2 psf per month.
US-based IT services company Cognizant recently made the news for planning to lay off about 3,500 employees, or 1% of its workforce, and give up about 11 million square feet of office space, mostly in India. These moves are part of Cognizant’s efforts to rationalize its workspace and adapt to a hybrid model in the post-pandemic environment. Cognizant CEO Ravi Kumar said the company will now focus on investing in generative AI tools such as ChatGPT, which can speed up the work of its employees in various areas including consulting, design, engineering and operations. Cognizant hopes to double the productivity of its employees by using this technology.
Cognizant, a leading technology and consulting firm, is embarking on a cost-savings initiative called NextGen that aims to save the company $400 million. The plan involves cutting 3,500 non-billable positions, or 1% of the workforce, and rationalizing real estate costs by giving up 80,000 seats. Shares of Cognizant surged 7% on Nasdaq following the announcement.
The company expects to save $350 million in 2023 and $50 million in 2024. About $200 million of that will come from employee severance and other costs related to non-billable personnel, while another $200 million will come from office space consolidation.
Cognizant, a global leader in IT services, has announced plans to invest in generative AI tools to speed up the work of its workforce across areas including consulting, design, engineering and operations. Cognizant CEO Ravi Kumar confirmed the news, saying the company is currently testing the new technology, which has the potential to double the productivity of employees. The investment comes at a time when the company is also facing challenges in IT, where it plans to lay off 3,500 employees, or 1% of its workforce, and cut costs by closing some office space.
Demand is also coming from companies working on the cutting edge of 5G and related equipment, Rohira said. While there are still no requests for proposals for larger spaces, nor are they expected for the next 3-4 quarters, there is demand from those seeking 50,000-150,000 sq. ft. of space.
With more than 46% of Mindspace REIT’s tenants coming from the tech sector, the slowdown in the global economy has had an impact, with sublease spreads falling to 26.3% in FY23, down from 31% a year ago. . However, the committed occupancy rate also increased by 470 bps year-on-year to 89%.
Mindspace REIT reported a net operating income of Rs 1,710 crore for FY23, up 13.2% YoY, while revenue rose 16.6% to Rs 2,068.5 crore. Issuance rose 3.8% year-on-year to Rs 19.10 per unit. It added more than 30 tenants, while in-place rents rose 5.7% year-on-year to Rs 65.2 psf per month.
US-based IT services company Cognizant recently made the news for planning to lay off about 3,500 employees, or 1% of its workforce, and give up about 11 million square feet of office space, mostly in India. These moves are part of Cognizant’s efforts to rationalize its workspace and adapt to a hybrid model in the post-pandemic environment. Cognizant CEO Ravi Kumar said the company will now focus on investing in generative AI tools such as ChatGPT, which can speed up the work of its employees in various areas including consulting, design, engineering and operations. Cognizant hopes to double the productivity of its employees by using this technology.
Cognizant, a leading technology and consulting firm, is embarking on a cost-savings initiative called NextGen that aims to save the company $400 million. The plan involves cutting 3,500 non-billable positions, or 1% of the workforce, and rationalizing real estate costs by giving up 80,000 seats. Shares of Cognizant surged 7% on Nasdaq following the announcement.
The company expects to save $350 million in 2023 and $50 million in 2024. Approximately $200 million of that will result from employee severance and other expenses related to non-claimable personnel, and an additional $200 million will result from the consolidation of office space.
Cognizant, a global leader in IT services, has announced plans to invest in generative AI tools to accelerate the work of its workforce in areas such as consulting, design, engineering and operations. Cognizant CEO Ravi Kumar confirmed the news, saying the company is currently testing new technology that has the potential to double the productivity of employees. The investment comes at a time when the company, which is also facing IT challenges, plans to lay off 3,500 workers, or 1% of its workforce, and cut costs by closing some office space.
However, the company recently laid off 3,500 employees, or 1% of its workforce, and also confirmed plans to cut costs by closing some office spaces, reducing employment for those affected. There are growing concerns about the stability of Headcount reductions impact employees and non-billable administrative costs across corporate functions. There is also a structural shift in real estate costs in India, as only 10-15% of the workforce per company comes to the office. On the other hand, 30-40% of India’s IT workers are located in Tier 2 and 3 cities, which is not the case. Came back due to the ongoing pandemic.
Cognizant’s investment in generative artificial intelligence is an important step toward increasing productivity and maintaining leadership in the technology services industry. While the recent layoffs may have caused some concern among employees, the company’s efforts to cut costs and invest in new technologies demonstrate their commitment to adapting to changing times and remaining competitive in the long-term.
