Cognizant Technology Solutions will invest ₹15.82 billion ($182.76 million) to establish a new campus in the southern Indian city of Vishakhapatnam, aiming to generate around 8,000 tech jobs, according to a statement from the Andhra Pradesh government. The facility is expected to become operational by March 2029.
This move highlights Cognizant’s focus on expanding its talent base in tier-2 cities, aligning with its broader strategy to reduce real estate costs. In 2023, CEO Ravi Kumar S announced plans to relinquish 11 million square feet of office space globally, with a significant portion in India’s major metros, and instead invest in emerging locations, Reuters news report said.
The Vishakhapatnam project follows a similar announcement by Tata Consultancy Services (TCS), which recently committed ₹13.7 billion to a new campus in the city, set to create 12,000 jobs. These back-to-back investments underscore a growing trend among IT majors to tap into new talent pools beyond India’s traditional tech hubs.
Despite global cost pressures, Cognizant has signaled optimism, raising its annual revenue forecast for 2025 to between $20.5 billion and $21.0 billion, buoyed by demand for AI-driven IT services.
Cognizant earlier reported total headcount of 336,300 as of March 31, 2025. Cognizant, one of the top tech service companies, registered a voluntary attrition rate of 15.8 percent for its Tech Services segment in Q1 2025, down from 15.9 percent in Q4 2024 but higher than 13.1 percent in Q1 2024.
Job cut
Cognizant recently reduced its global workforce as part of a broader restructuring strategy. The company cut around 10,700 jobs in 2024, bringing its total headcount to approximately 336,800 by the end of the year. This includes a planned reduction of 3,500 roles, mainly in non-billable functions, to streamline operations and improve efficiency.
Additionally, Cognizant targeted 10,000 to 12,000 mid-to-senior level roles globally, with about 350 senior executives affected in India alone. Despite these job cuts, the company remains committed to hiring and plans to onboard 20,000 fresh graduates in 2025 to strengthen its delivery capabilities. These actions reflect Cognizant’s effort to align its workforce with evolving client demands and revenue growth while leveraging AI-driven initiatives to enhance productivity.
InfotechLead.com News Desk
