Cognizant to Invest in ChatGPT-like AI Tools after Laying off 3500
Cognizant has confirmed its plans to invest in generative AI tools like ChatGPT after laying off 3500 employees or 1% of its workforce. Cognizant is now testing new technology that can speed up the work of its employees in various areas such as consulting, design, engineering, and operations.
The company hopes to double its employees' productivity by using generative AI technology. According to CEO Ravi Kumar, "generative AI offers the potential to fundamentally transform our clients’ businesses and increase our own productivity."
Investing in Generative AI
Kumar further added that they are investing more in generative AI. Cognizant has a process called the "AI accelerator," which involves working with clients in special environments to find the most important ways to use AI. They quickly create test versions of solutions to try out in the field.
"We have conducted ideation sessions with over 30 clients and are now working to industrialize solutions to their common challenges. We believe generative AI will revolutionize the technology services industry, creating higher rates of productivity and driving greater prominence for software and data engineering expertise,” he was quoted by ET as saying.
Layoffs Due to a Rejig Programme
Only a couple of days ago, Kumar confirmed that the layoffs are going to take place in the company. He said that the impact on employees will be felt across corporate functions and non-billable overheads.
There will be a structural shift in real estate costs since only 10-15% of the workforce in every company in India comes to offices, and 30-40% of Indian IT workers are located in tier II and III cities and have not returned.
Kumar feels that it is essential to create social capital in these cities. The layoffs in Cognizant are happening as a result of a two-year rejig programme. Cognizant plans to spend $200 million to cover costs related to laying off employees. These costs are mainly for non-billable and corporate personnel and are expected to happen mostly in 2023.
