Cognizant Plans Office Asset Sales in Bengaluru and Hyderabad as Part of Cost-Cutting Strategy Cognizant Technologies has announced its intention to sell office assets in Bengaluru and Hyderabad, signaling a strategic move to transition towards an asset-light model and capitalize on non-core real estate. This decision is a crucial component of the company’s broader cost-cutting strategy, aimed at saving $400 million over the next two years.
As part of this divestment plan, Cognizant is set to sell a 10-acre campus in Gachibowli, Hyderabad, and a 14-acre campus in Siruseri, Chennai. By shedding non-core real estate, the company aims to streamline its operations, optimize costs, and enhance overall financial efficiency.
The decision comes in the wake of Cognizant reporting a 16% drop in net profit to $525 million for the third quarter of 2023. The company is actively taking measures to strengthen its fundamentals, improve customer satisfaction, and invest in serving clients amidst the prevailing economic uncertainty.
Cognizant’s total headcount reached 346,600 by the end of Q3 2023, reflecting the company’s commitment to its workforce and its ability to adapt to changing market dynamics. The asset sales align with the company’s strategic vision to become more agile and resilient, positioning itself for sustained growth in the competitive technology and consulting industry.
As Cognizant continues to implement its cost-cutting measures and strategic realignment, industry observers will be monitoring the impact on the company’s financial performance and its ability to navigate the evolving landscape of the technology services sector.