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Corporate

Cognizant plans 15000 layoffs, India faces impact

Cognizant is planning a major round of job cuts, and many employees, especially in India, are worried about what comes next. Reports suggest the company could cut between 12,000 and 15,000 jobs globally, with India likely to see the biggest impact.

The move is part of a larger effort by the company to reorganise how it works. Cognizant is trying to become more efficient and adapt to changes in the tech industry, where automation and artificial intelligence are playing a bigger role.

India has the largest number of Cognizant employees, which is why the impact there could be higher. For many workers, this news comes at a time when hiring in the IT sector has already slowed, making the situation more stressful.

The company has set aside a significant amount of money for this restructuring, including funds for severance packages for employees who may lose their jobs. While Cognizant has not officially confirmed the final number of layoffs, the scale being discussed has raised concerns across teams.

For many employees, this means increased pressure to upgrade their skills and stay relevant. There is also growing uncertainty about job stability, especially for those in roles that can be automated.

At the same time, companies like Cognizant say these changes are necessary to stay competitive in a fast-changing market. The restructuring is expected to happen over time, not all at once.

For now, employees are waiting for more clarity on who will be affected and when. The situation highlights how quickly the tech industry is evolving and how those changes are directly affecting jobs and careers.

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Cognizant to cut 4,000 jobs amid AI shift

Cognizant is set to lay off around 4,000 employees, nearly 1% of its workforce, as it adjusts to changes in the tech industry. The company is facing slower demand for traditional IT services, while businesses are rapidly moving towards AI-based solutions.

The job cuts are part of a larger plan to restructure operations and focus more on artificial intelligence and automation. Cognizant is also increasing investments in new technologies to stay competitive.

The move highlights how companies are reshaping their workforce to keep pace with fast-changing technology trends.

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Corporate

Cognizant to buy Astreya for $600 mn

Cognizant has announced plans to acquire Astreya in a deal worth around $600 million, as it looks to expand its capabilities in artificial intelligence (AI) and data infrastructure.

Astreya is known for managing large-scale IT systems, including data centres, cloud operations, and AI infrastructure. By bringing Astreya into its network, Cognizant aims to better support companies that are increasingly relying on AI and digital technologies for their operations.

The acquisition comes at a time when businesses across the world are investing heavily in AI tools and cloud-based systems. As demand grows, companies need strong backend infrastructure to run these technologies smoothly, and this is where Astreya’s expertise fits in.

Cognizant said the deal will help it deliver more advanced AI-driven solutions to its clients. Astreya’s experience in handling complex IT environments, including enterprise networks and AI platforms, is expected to strengthen Cognizant’s overall service offering.

The deal is likely to be completed in the coming months, subject to necessary approvals. Once finalised, Astreya’s team and technology will become part of Cognizant’s global operations.

This move is part of a larger strategy for Cognizant to stay competitive in a rapidly changing tech industry. The company has been focusing more on AI, automation, and cloud services, which are becoming key areas of growth.

Astreya, founded over two decades ago, has built a strong reputation for managing IT operations for major global clients. Its addition is expected to give Cognizant an edge in handling large and complex digital projects.

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Corporate

Cognizant warns AI could hit legacy services

Cognizant Technology Solutions has highlighted potential risks from artificial intelligence (AI) and automation in its latest annual report. The company warned that some traditional IT services could face lower demand or pricing pressures as clients increasingly adopt AI-driven solutions.

In its 2025 annual 10‑K filing, Cognizant noted that while AI offers opportunities, the notion that new AI tools can instantly replace large parts of enterprise IT work is “misplaced.” The firm emphasized that the transition to AI-enabled services will be complex and gradual.

The disclosure aligns Cognizant with other IT giants who are openly acknowledging AI’s potential to reshape traditional outsourcing and labor-intensive services. Analysts say this could pressure firms to rethink offerings, reskill employees, and adapt cost structures to stay competitive.

CEO Ravi Kumar S recently reiterated that while AI adoption is accelerating, its economic impact on existing enterprise IT workloads is not yet large enough to immediately replace legacy services.

Besides AI, Cognizant’s annual report also pointed to regulatory and reputational risks related to offshore outsourcing. Changes in laws or client perceptions could affect delivery models and workforce strategies, adding another layer of uncertainty to operations.

Despite these risks, Cognizant continues to invest in AI, cloud, and digital transformation services, aiming to help clients modernize and scale. The company is balancing growth opportunities with caution, ensuring emerging technologies do not cannibalize core business segments.

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Cognizant Q4 profit rises 18% to $648 mn

Cognizant Technology Solutions reported an 18% jump in net profit to $648 million for the fourth quarter, with revenue rising 4.9% to $5.3 billion compared to last year.

On a constant currency basis, revenue increased 3.8%. Growth was driven mainly by financial services, while other sectors and regions showed steady performance.

The company added employees and continued investing in strategic areas, including AI-driven services. For the first quarter of 2026, Cognizant expects revenue growth between 4.8% and 6.3%, with full-year revenue projected at $22.14–$22.66 billion, signaling confidence in continued expansion.