1/ Cognizant's CEO Ravi Kumar S implements a $400-million cost-saving plan, aka NextGen - cutting 3,500 non-billable roles, ~1% of the workforce. š°š§
2/ Real estate costs will rationalise, with 80,000 seats (~8 Mn. Sq Ft. Area) being given up as part of office space consolidation. š¢š
Estimated Cost Savings per annum: $ 400 million in two years. ~50% from office space consolidation š°š°
Cost Optimisation Impact:
1/ Cognizant anticipates 20-40 basis points margin expansion in 2024 due to the NextGen plan. šš¼
2/ Cognizant's share price on Nasdaq surged by 7% following NextGenās cost-cutting plan announcement. š¹š
3/ Revenue saved from Cost-saving measures will be reinvested to boost the companyās lagging growth. šššŖ
4/ Layoffs can lead to a loss of skilled and experienced employees, a decline in productivity, and a negative impact on team spirit. It can weaken the company's reputation and employeesā loyalty. Attracting and retaining top talent in the future may also become a formidable challenge. āš§š„
Country: United States of America šŗšø
Company: Cognizant Technology Solutions Corporation š¼š¢
Industry: Information technology š»š
Cost Element: Employee Benefit Expenses and Lease Rent šøš§
Nature: Opex + Capex š¼š°
Cost Classification: Variable Cost / Semi-Variable Cost + Direct Employees Cost / Operations Overheads / Administrative Overheads / Marketing Overheadsšš¼ššš£
Source: May 18, 2023 |Firstpost |https://www.firstpost.com/world/amazon-to-pay-shoppers-to-skip-door-step-delivery-and-pick-their-own-parcels-12571732.html
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