Cognizant Plans Sale of Bengaluru and Hyderabad Offices
Cognizant Technologies, a prominent software services company, is looking to sell its office assets in Bengaluru and Hyderabad as part of its strategy to transition to an asset-light model and leverage non-core real estate, as reported. The company plans to divest a 10-acre campus in Gachibowli, Hyderabad, and a 14-acre campus in Siruseri, Chennai, aligning with its cost-cutting restructuring initiative to achieve $400 million in savings over a two-year period. This includes the goal of vacating 11 million square feet of office space. "Cognizant is re-evaluating its entire real estate portfolio and has given up rented properties in some geographies", the report quoted. The company, in some cases, has renegotiated the rent and downsized the assets too, the people said further.
Cognizant assists businesses in updating technology, reenvisioning processes, and reshaping experiences. The company experienced a 16% decline in net profit, reaching $525 million in the third quarter of September 2023, compared to $629 million during the corresponding period the previous year. Revenue remained nearly unchanged at $4.89 billion. "We strengthened the company’s fundamentals during the third quarter as reflected in higher customer satisfaction scores, significantly lower voluntary attrition, and continued growth in bookings, despite ongoing economic uncertainty", said Ravi Kumar S, chief executive officer of Cognizant. “We are investing to put Cognizant in the best position to serve clients as they strive to reduce costs, digitally transform their businesses and embrace generative AI,” he added.
As of the conclusion of the third quarter, the total headcount stood at 346,600, marking a rise of 1,000 from Q2, 2023, and a decrease of 2,800 from Q3, 2022. "We have narrowed our full-year revenue guidance range, which now reflects recent discretionary spending pressure and its impact on our near-term revenue expectations. We have also updated our adjusted operating margin guidance to approximately 14.7%, which is the high-end of our prior range, reflecting our continuing focus on enhancing operational discipline", said Jan Siegmund, Chief Financial Officer at Cognizant.
Cognizant assists businesses in updating technology, reenvisioning processes, and reshaping experiences. The company experienced a 16% decline in net profit, reaching $525 million in the third quarter of September 2023, compared to $629 million during the corresponding period the previous year. Revenue remained nearly unchanged at $4.89 billion. "We strengthened the company’s fundamentals during the third quarter as reflected in higher customer satisfaction scores, significantly lower voluntary attrition, and continued growth in bookings, despite ongoing economic uncertainty", said Ravi Kumar S, chief executive officer of Cognizant. “We are investing to put Cognizant in the best position to serve clients as they strive to reduce costs, digitally transform their businesses and embrace generative AI,” he added.
As of the conclusion of the third quarter, the total headcount stood at 346,600, marking a rise of 1,000 from Q2, 2023, and a decrease of 2,800 from Q3, 2022. "We have narrowed our full-year revenue guidance range, which now reflects recent discretionary spending pressure and its impact on our near-term revenue expectations. We have also updated our adjusted operating margin guidance to approximately 14.7%, which is the high-end of our prior range, reflecting our continuing focus on enhancing operational discipline", said Jan Siegmund, Chief Financial Officer at Cognizant.
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