Cognizant set to hire 20,000 employees in 2025, confirms CEO

Defying the trend of widespread layoffs in the tech sector, Cognizant Technology Solutions has announced plans to hire 20,000 freshers this year. This ambitious hiring initiative comes as the company reported strong employee utilisation figures, with the utilisation rate rising to 85% in the March quarter, up from 83% a year ago. However, the company’s Chief Financial Officer, Jatin Dalal, acknowledged that this figure would likely dip in the next few quarters as the influx of new employees joins the workforce.

As of the end of the March quarter, Cognizant employed 336,300 people, with over 85% of them based in India. The decision to hire fresh talent comes as part of the company’s long-term strategy to sustain growth and continue scaling its operations, particularly in the realm of managed services and fixed-price work.

Speaking to US-based analysts, Cognizant’s CEO, S Ravi Kumar, explained that the increase in employee utilisation to 85% represented a significant achievement for the company. However, he emphasised the importance of building capacity for the future. “When you do good fulfilment, you also need to build capacity for the future. This year, we are going to hire a lot more freshers because we want to size a pyramid,” Kumar said. He further elaborated that as the demand for managed services increases, there is a need to balance the company’s workforce structure.

“The fixed price work over the last two years has gone up, so we can actually start a pyramid. But it also comes equally with the overhead of carrying a higher bench at a lower cost and actually offshore,” he added. Kumar's reference to the ‘pyramid’ signifies a strategy that focuses on balancing junior talent (freshers) with experienced professionals, which will help the company scale its capabilities effectively while managing costs.

The role of Artificial Intelligence (AI) in the future of Cognizant’s operations is also significant. Kumar highlighted the company’s focus on leveraging AI to improve productivity, optimise employee utilisation, and “rightsise the pyramid”. AI is already making its mark at Cognizant, with the company having engaged in 1,400 early GenAI projects—up from 1,200 at the end of the fourth quarter. According to Kumar, AI is playing out in three distinct vectors, with each one offering unique opportunities for growth.

In the short term, AI is being leveraged to improve productivity and tackle the significant technical debt that many enterprises are carrying. AI-written code now accounts for over 20% of Cognizant’s output, creating significant efficiencies for the company’s developer community.

The second vector focuses on industrialising AI, helping businesses to integrate and customise AI solutions tailored to their specific needs. The third vector, “agentification,” presents an opportunity to tap into new labour pools and unlock further growth potential for the company.

In addition to its ambitious hiring plans, Cognizant reported a solid financial performance in the first quarter. The company posted a 21% rise in net profit and an 8% increase in revenue. One notable move was the sale of an office complex in India, which resulted in a gain of $62 million. This transaction is part of Cognizant’s broader strategy to optimise its assets and reinvest in its future growth.

Kumar also revealed that the company had secured four large deals during the first quarter, including a mega-deal valued at more than $500 million. Despite a 7% decline in first-quarter bookings compared to the previous year, bookings for large and expansion deals grew significantly. Over a 12-month trailing basis, bookings rose by 3%, indicating a healthy backlog that will support Cognizant’s growth trajectory.

Cognizant continues to expand its footprint across India, particularly in smaller cities. The company is also investing in the development of advanced AI technologies, with plans to open a 14-acre immersive learning centre in Chennai. This centre is expected to train 100,000 individuals annually in cutting-edge AI skills, contributing to the company’s goal of training one million individuals through its Synapse initiative. Over the last 18 months, Synapse has trained over 400,000 individuals worldwide, putting Cognizant well on its way to achieving this ambitious target.

As Cognizant looks to the future, the company is focused not only on expanding its workforce and capitalising on AI but also on building a strong, ethical culture. In line with its expansion strategy, Cognizant’s leadership is committed to ensuring that fresh talent is integrated into the company effectively. Training, leadership development, and fostering an inclusive culture are priorities that will help the company maintain its competitive edge in an increasingly dynamic and technology-driven business environment.

While the tech industry grapples with mass layoffs and uncertain economic conditions, Cognizant’s decision to hire 20,000 freshers stands as a bold statement of confidence in its long-term strategy. By investing in talent, embracing AI, and expanding into new regions, Cognizant is positioning itself for sustainable growth in the years to come.