10,700 Employees Quit Cognizant in a Year as Attrition Rises to 15.9%
Cognizant Technology Solutions, one of the leading IT services firms, has reported a decline in its workforce for the December 2024 quarter, with 10,700 employees quitting over the past year. The company’s total headcount now stands at approximately 336,800, reflecting an increased attrition rate of 15.9% on a trailing twelve-month basis. Despite this, Cognizant remains optimistic about hiring more employees in 2025 to support its expansion.
Attrition and Workforce Trends at Cognizant
The rising attrition rate is a trend observed across the Indian IT sector, with a better demand environment and enhanced hiring capabilities contributing to this shift. At the same time, Cognizant’s utilization rate dropped by two percentage points to 82%, though the company maintains that utilization remained strong throughout 2024.
Interestingly, the company is witnessing a surge in former employees returning. In 2024, around 13,000 ex-employees rejoined Cognizant, with another 10,000 expressing interest in coming back. This trend highlights Cognizant’s ability to attract and retain talent despite market challenges.
Comparing Cognizant’s Workforce Strategy with Competitors
While Cognizant experienced a reduction in its workforce, competitors like Accenture continued their hiring spree, adding 24,697 employees in Q1 FY25, bringing its total headcount to 799,000. In contrast, India’s top five IT companies—TCS, Infosys, HCLTech, Wipro, and Tech Mahindra—reported a combined reduction of 2,587 employees in Q3 FY25, primarily due to a seasonally weaker period with furloughs and reduced hiring.
Revenue Growth and Market Outlook
Despite the workforce reduction, Cognizant exceeded its revenue expectations. The company has projected an annual revenue growth of 3.5% to 6% in constant currency terms for 2025, indicating confidence in its business outlook.
CFO Jatin Dalal emphasized that Cognizant plans to increase hiring throughout 2025, aligning with its growth strategy. The company also recorded a 6.8% revenue growth in Q4 2024, with total annual revenue standing at $19.7 billion.
Cognizant’s Future Strategy
CEO Ravi Kumar S stated that the company is focusing on AI-driven platforms, client-centricity, and innovation to drive future growth. Cognizant closed a record 29 large deals in 2024, demonstrating the effectiveness of its strategic initiatives.
With plans to increase hiring, improve utilization, and expand AI capabilities, Cognizant aims to strengthen its position in the IT services industry despite workforce challenges.
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Disclaimer
This article is based on publicly available information, industry reports, and company statements. The data presented here is for informational purposes only and does not constitute financial, investment, or employment advice. Readers are encouraged to verify details independently and consult official sources before making any decisions.
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