Cognizant Cuts 10700 Jobs in Q4, Aims for Strong Hiring Push in 2025

Cognizant’s workforce declined by 10,700 employees in Q4, with attrition rising to 15.9%, but the company plans to expand hiring throughout 2025. CEO Ravi Kumar S highlighted a strong trend of former employees returning, with 13,000 rejoining in 2024. Despite the workforce reduction, Cognizant exceeded revenue expectations and projected 3.5%-6% growth for 2025.

CONTENTS:

• Cognizant’s Workforce Declines in Q4, Plans to Boost Hiring in 2025
• Cognizant’s Q4 Workforce Declines by 10,700, Plans to Ramp Up Hiring in 2025

Cognizant Cuts 10700 Jobs in Q4, Aims for Strong Hiring Push in 2025

Cognizant’s Workforce Declines in Q4, Plans to Boost Hiring in 2025

Cognizant Cuts 10700 Jobs in Q4 Cognizant Technology Solutions saw a decline in its workforce during the December quarter, with a year-over-year reduction of 10,700 employees and a quarterly drop of 3,300. Despite this, the company remains optimistic about expanding its headcount in 2025. CFO Jatin Dalal expressed confidence in increasing hiring throughout the year to support growth.

Workforce Trends: Attrition, Rehiring, and Utilization

Cognizant Cuts 10700 Jobs in Q4 At the end of the quarter, Cognizant had approximately 336,800 employees. The company’s attrition rate rose to 15.9% on a trailing twelve-month basis, reflecting a stronger demand environment and improved hiring capabilities. This increase aligns with trends seen across Indian IT firms. Additionally, utilization dropped by 2 percentage points to 82%, though management noted that utilization levels remained strong in 2024.

CEO Ravi Kumar S highlighted a notable trend of former employees returning, with 13,000 rejoining Cognizant in 2024 and another 10,000 expressing interest in coming back. This trend underscores the company’s ability to retain experienced talent and leadership.

Cognizant’s Position Amid Industry Shifts

Cognizant Cuts 10700 Jobs in Q4 In comparison, Accenture’s workforce grew for the third straight quarter, adding 24,697 employees to reach 799,000 in Q1 FY25. Meanwhile, India’s top five IT firms—TCS, Infosys, HCLTech, Wipro, and Tech Mahindra—reported a combined workforce reduction of 2,587 employees in Q3 FY25 due to seasonal factors such as furloughs and lower hiring activity.

Despite the workforce decline, Cognizant exceeded revenue expectations and projected a constant currency revenue growth of 3.5% to 6% for 2025, signaling confidence in its business outlook.

Cognizant’s Q4 Workforce Declines by 10,700, Plans to Ramp Up Hiring in 2025

Cognizant Cuts 10700 Jobs in Q4 Cognizant Technology Solutions, headquartered in the US, reported a decline in its workforce during the December quarter but expects to increase hiring in each quarter of 2025.

In Q4, the Teaneck-based IT firm’s employee count dropped by 10,700 compared to the same period last year and by 3,300 from the previous quarter.

“As we move forward, we anticipate adding to our headcount in line with our growth plans throughout 2025. That is the key factor at play,” Chief Financial Officer Jatin Dalal stated during the Q4 earnings announcement.

The company, which follows a January-December financial year, closed the quarter with approximately 336,800 employees.

Attrition, Utilization, and Workforce Trends

Attrition increased by 2.1 percentage points, reaching 15.9% on a trailing twelve-month basis. This aligns with broader industry trends, as attrition rates have risen across Indian IT firms in recent quarters.

Dalal noted that the higher attrition rate reflects a stronger demand environment compared to previous quarters, and the company remains capable of meeting its hiring needs.

Cognizant’s utilization rate fell by 2 percentage points to 82% in Q4, though management emphasized that overall utilization levels remained robust throughout 2024.

Employee Return Trends and Competitive Landscape

Cognizant Cuts 10700 Jobs in Q4 CEO Ravi Kumar S highlighted a growing trend of former employees rejoining Cognizant. In 2024, approximately 13,000 ex-employees returned, with another 10,000 expressing interest in coming back.

“We’ve built an exceptional team. Many who left are now returning, making us a talent magnet,” Kumar said at the World Economic Forum in Davos.

Meanwhile, Accenture, Cognizant’s key competitor and the world’s largest IT services firm, increased its workforce for the third consecutive quarter, adding 24,697 employees to reach 799,000 in Q1 FY25.

In contrast, India’s top five IT firms—TCS, Infosys, HCLTech, Wipro, and Tech Mahindra—reported a combined workforce reduction of 2,587 employees in Q3 FY25, largely due to seasonal factors such as furloughs and slower hiring.

However, on a nine-month basis (9M FY25), these companies added 10,412 employees, showing a cautious recovery after reducing over 57,600 jobs in the same period the previous year.

Revenue Growth and Market Outlook

Cognizant Cuts 10700 Jobs in Q4 Despite workforce reductions, Cognizant exceeded market expectations on revenue. The Nasdaq-listed company provided an annual revenue growth forecast of 3.5% to 6% in constant currency terms for 2025, signaling confidence in its business trajectory.