This programme will affect approximately 1% of its total workforce of 350,000
Cognizant revealed on July 25, 2023, that it is renewing and expanding its collaboration with Gilead Sciences, a biopharmaceutical company. The extended partnership, worth $800 million, focuses on streamlining Gilead’s operations and speeding up its digital transformation.
Under the agreement, Cognizant will manage Gilead’s global IT infrastructure, applications, and advanced analytics, utilising generative artificial intelligence (GenAI) and AI automation to improve customer service and manufacturing efficiencies.
While this expansion heralds a new chapter in Cognizant and Gilead’s partnership, it also comes amidst notable personnel-related actions within Cognizant. The company revealed that its workforce of approximately 350,000 employees would be impacted by this program, leading to the termination of around 3,500 non-billable and corporate personnel. This represents approximately 1 per cent of Cognizant’s total workforce.
The move, while unfortunate for those affected employees, underscores the company’s focus on optimising its workforce to align with its evolving business priorities and strategic objectives. As Cognizant engages in significant deals, it aims to ensure its workforce remains agile, competitive, and well-positioned to deliver value to its clients.
The move reflects Cognizant’s effort to optimise its workforce and align it with its evolving business priorities while capitalising on growth opportunities in the IT services industry.